Approaches to Operations Management and Role of Managers and Leaders

This report discusses the different approaches to operations management and the role played by managers and leaders in a business organization. It explores the importance of human resource and job design, inventory management, and quality management. The report also delves into the Six Sigma and Just in Time approaches used by Aldi, a leading supermarket in Germany.

MANAGEMENT
OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define and compare the different roles and characteristics of a leader and a manager.........1
TASK 2............................................................................................................................................3
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.......................................................................................................3
P3 Apply different theories and models of approach, including situational leadership, systems
leadership and contingency.........................................................................................................5
TASK 3............................................................................................................................................6
P4. Key approaches to operations management and role played by managers and leaders........6
P5. Importance of operations management in achieving business objectives............................8
TASK 4............................................................................................................................................9
P6 Various factors of business environment which lead to impact on operational management
and decision-making by leaders and manager ...........................................................................9
CONCLUSION ...........................................................................................................................10
References......................................................................................................................................12

INTRODUCTION
Management refers to the series of various principles which are linked to different
business functions such as planning, organisation, staffing as well as controlling. In addition to
this, leader and manager perform their work in an appropriate manner. Operation is considered as
a process in which both manger and leader handle internal work of the company so that it will
operate its business function in an effectual manner. This report selected the company Aldi is
one the largest supermarket of Germany who deal in household essentials and grocery store. It
was founded in 1946 in Essen, Germany. They provides various groceries products as well as
household products at international level(Argote and Hora, 2017). It is essential to understand
management and operation of Aldi by assessing different concepts. In this report, various kinds
of theories need to be discussed such as situational as well as contingency leadership and many
more. In addition to this, it involves various functions and role of manager and leader in different
organisational context.
TASK 1
P1 Define and compare the different roles and characteristics of a leader and a manager.
According to the analysis it has been determined that Aldi company which deals in
grocery and household products that involves large number of leaders and managers as well as
the members of their staff. These people in the organisation provide the optimistic things which
lead to achieve the goals and objectives in a suitable manner. Further, it has described the
concept of leader and manager with their leadership styles are as under:
Concept of leadership and a leader
Leadership is defined as the process which involves constantly assist of employees that
lead to accomplish goals and objectives of the organisation in a appropriate direction. It is the
better quality of a leader in which lead to effect on behaviour of the particular individual
according to their skills and abilities (De Roover, 2017). In context to Aldi, the guidance which
are given by employees in a suitable direction in order to achieve their targeted goals.
Leader refers to people who gives advice to the employees of the organisation so that
they could accomplish the objectives of company with defined strategy. Their mission and vision
is to be target according to which leads to increase the profitability and productivity. In context
to Aldi company they motivates their employees towards the goals of the organisation.

Concept of Management and a Manager
Management is defined as the process in which people, machine, raw materials and
wealth are managed according to which they achieve pre defined goals and objectives which lead
to growth in near future(Engelsberger and Greiner, 2018). Further, the process of management
involves planning, organising, directing, staffing and controlling the organisation in an definite
and effective manner.
Therefore, a manager is defined as the person which has innovative skilled while running
of an organisation so that they could use available resources in achieving the goals and
objectives. The manager of Aldi has performed the various activities which involves in
managing, selecting and recruiting the employees which results in success of predefined goals
and objectives in a suitable manner.
Comparison between the roles of a Leader and Manager
Basis Role of leader Role of manager
Meaning The role of leader in a
company is to make the
mission and vision in which
the knowledge of subordinates
work (Feng and Shanthikumar,
2017).
The role of a manger is to
utilise management effectively
in order to achieve the goals
and objectives in a appropriate
manner.
Approach The leader has the authority to
set their own directions.
A manager of a company has
evolved the planning for the
future implementation.
Aim Its main aim is to develop the
growth and opportunities.
Its main aim is to accomplish
the necessary results.
Aspire It promotes the growth for
effectiveness of organisation.
It acquire the pre defined
outcomes in order to increase
the efficiency of an

organisation.
Comparison between characteristics of a Leader and Manager
Basis Characteristic of leader Characteristic of manager
Time authority The main characteristic of a
leader is to control all the
responsibilities in a proper
time manner and also decline
improper management in order
to achieve goals and
objectives(Karlsson, 2016).
The manager of Aldi company
plays a important role in
managing all the duties and
authorities in appropriate time.
TASK 2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
In business organisation, the manager and leader perform various functions and roles in
different circumstances in an suitable manner(Heizer, 2016). In context of Aldi, the manger
focuses on crucial situations which is mentioned below:
Situation 1: Adaptation of latest technology in process
Aldi is one of the biggest supermarket conduct its business operation at international
level and it is essential for company to adopt advanced technology on regular basis. This assists
them in accelerating sales as well as profitability of the company. The manager of business
organisation emphasised on providing innovative products and services in order to satisfy them.
Herein, the manger and leader plays various role and function which is going to be discussed
below:
Role of Leader

 To execute and implement advanced technology in business organisation, the role of
leader is to provide the guidance to the staff members so that they can handle business
activities in suitable manner.
 Herein, the role of leader is to enhance motivational as well as satisfaction level of
employees to adopt latest technology in business organisation. In context of Aldi, the
leader focuses on providing guidance to staff members to implement new technology in
appropriate manner.
Functions of Manager
 Herein, To execute latest technology at the workplace of Aldi, manager emphasised on
making effective policies and procedures in order to avoid grievances and conflicts in
business organisation.
 Manager of Aldi emphasised on removal of deviation in business organisation thus it
will help them to execute the latest technology in an appropriate manner (Lee and Tang,
2018). At last, they will achieve success in implementation of advanced technology for
future growth and development of company.
Situation 2: Conflicts situations
The conflicts and grievances is most common factors which arises inside the business
organisation on regular basis. In context of Aldi, the occurrence of grievances and conflicts
imposes direct impact on profitability as well as productivity of the business organisation. The
leader and manger emphasised on creating a pleasant working environment inside the company
in order to provide equal employment opportunities to employees. In such type of situation, role
of leader which is mentioned below:
Role of Leader
The leader will organise meeting with all employees in order to understand the reason
behind grievances and conflict in the workplace. After this, leader emphasised on resolving
conflicts and grievances that arise in the workplace.
It is importance for leader of Aldi to handle the conflicts arise in the workplace in order
to accelerate the performance level of employees(Lu, Lubbad and Løset, 2018). This will help
them in increasing productivity as well as profitability in the business organisation.
Functions of Manager

 In order to resolve conflicts arises at Aldi, manager will organised a meeting privately
with the conflicts participants so that they can understand circumstances in an
appropriate manner that helps in maintaining effective strategies and policies of
business organisation.
 The manager creating effective strategies, policies and procedures in order to minimise
conflicts arises in the business organisation. They emphasised on resolving issues which
helps in increasing the performance of staff members.
P3 Apply different theories and models of approach, including situational leadership, systems
leadership and contingency.
Various theories are involved in Aldi company which acquire so that they could create
decisions accordant to that condition which is presently running. With reference to Aldi, the
manager and leader of this company would acquire several theories and models which lead to
evolve strategies according to the situation arise within a company (Meredith and Pilkington,
2018). The models of approach are ongoing process in a organisation. Through detailed
description some of the main models and theories are adopted in context to Aldi:-
System Leadership: In this leadership style, the manager and leader of business
organisation emphasised on creating a platform where staff members can perform its work in an
effective manner depend upon their potential. In discourse to Aldi, the manager focuses on
making effective strategies, policies as well as procedure in order to enhance motivational as
well satisfaction level of employees to perform their work well. It has been analysed that it is
necessary for manger to use leadership style so that employees execute their work in appropriate
manner . In assistance of this, they also focuses on removal of negative situations from the
workplace in order to enhance future success as well as growth of the business organisation.
Contingency Leadership: In this leadership style, the success of manager and leader is
not only depend upon their capabilities but it also involves two factors such as skills and
knowledge as well as situation of that individual. In context of Aldi, the leader and manger take
effective decision based on understanding of different circumstances and situations at the
business organisation. It has been said that there is no particular leadership style which suits best
to the company, the use of any style is based on circumstances as well as situation in order to get
suitable outcomes (Price and Forrest, 2016). The main purpose of both leader and manager of
Aldi is to develop effective strategies, plan and procedures according to the given situation for

expanding the performance level of employees. It helps in increasing future sales as well as
profit of the business organisation.
Situational leadership: This style of leadership is formulated and designed by Paul
Hersey and Kenneth Blanchard. It is a style through which a manager and a leader of Aldi
company could modify their leadership style which lead to the evolution of employees through
which they determines. The manager of Aldi company has follow this style of leadership in such
a way to create the plan or decisions towards that situation which are running presently in a
company. Sometimes, they can change these style technique in order to meet the needs of
another company according to the situations which are arrived. In addition to this, leadership
style it further involves which is related to selling, participating and delegating the authority.
This style of leadership could decide the right form of styles which occurs in predefined
situation(Sarkis, 2017). It is defined by differentiating the leader's personal characteristics
according to his individual as per the situation where leadership exist within the environment of
a company. The general rule of situational leadership appears as a best style in compare to others
leadership styles or models.
TASK 3
P4. Key approaches to operations management and role played by managers and leaders
Operations management is concerned with handling whole production system which
converts raw material into finished products in appropriate manner. Also, it focuses on managing
business activities in suitable manner which helps in enhancing the efficiency level inside the
business organisation. In context of Aldi, Operation function assists in maintaining equal
proportion between revenue and cost in the workplace. In addition to this, it involves human
resources and job design, quality management as well as inventory management which is given
below:
Human Resource and Job design: Human resource plays a very important role in every
business organisation. The main function of human resource is job design in order to overcome
from dissatisfaction level of staff members in performing a particular task. In reference of Aldi,
the HR Manager emphasised on skills, knowledge as well as competence of employees
(chönsleben, 2016). In addition to this, they offer a lot of rewards and incentives to staff
members in order to enhance performance level of employees.

Inventory Management: Inventory management refers to the management of stock as
well as inventory of company . The manager emphasised on having a right quantity of inventory,
in right place at right time at affordable cost. In context of Aldi, the management team focuses
on monitoring and controlling stock in an appropriate manner.
Quality Management: It plays a very essential role in every organisation in order to
enhance productivity as well as profitability. It includes various factors such as quality plan,
quality assurance, quality improvement as well as quality control. In discourse to Aldi, the
manager focuses on providing high quality product which helps in increasing future success as
well as growth of the business organisation.
Various approaches are used by Aldi in operation management:
Six Sigma: It is quantitative approach that is adopted by the manger of company for
reducing defects in goods and services. This will help them to work efficiently in the workplace
in order to enhance profitability of the business organisation(Schönsleben, 2018). In context of
Aldi, the leader and manager focuses on improving quality of product and eliminating mistakes
and error. This will help leader in encouraging employees to give best services to its customer
without any error. It will enhance motivational level of customer that helps in increasing
profitability of company.
Just in time approach: This approach helps the manager to assess the actual need and
requirement of raw material thus it helps company to eliminate the level of wastage. In
discourse to Aldi, the manager and leader emphasised on providing high quality product to its
customer that helps in increasing reputation as well as goodwill of the business organisation.
Total Quality Management (TQM): In this approach, the manager provide high quality
products to its customer in order to retain them for a longer time period. In reference of Aldi,
both leader and manager focuses on team work that helps them in offering high quality products
to its customer as well as eliminate wastage(Srinivasan, 201). In addition to this, this approach
helps manager in managing whole quality of products and services. On the other hand, it assists
leader in enhancing the motivation level of employees in order to achieve goal and objective of
the organisation.
Role played by Leader:

Leaders plays an essential role in operations management that helps in encouraging and
motivating employees. In context of Aldi, the role of leader is to provide high quality products
to its customer by eliminating wastage and error.
Role played by Manager:
Manager of Aldi, provides effective training to employees in order to implement latest
technology in the organisation. In assistance of this, manager focuses on increasing productivity
by eliminating waste and error from product of the company.
P5. Importance of operations management in achieving business objectives
Operation management is a hunch of an organisation while it controls and carries all the
actions in an organisation. It has the plan of action towards the business as well as functions of
management which controls the various activities such as designing the system which lead to use
in the manufacturing of the products (Wisner, 2016) In context to Aldi the functions of
management main aim is to provide the quality of its services to its customers.
 Satisfying Customer: It is essential for company to satisfy the requirements and needs
of customer in order to retain them for a longer time period. In context of Aldi, the
manager focuses on implementation of latest technology in order to satisfy its customer.
Apart form this, leader of Aldi, encourage its staff member to accept the change for
increasing customer satisfaction. The main purpose of company is to provide innovative
products to its customer in order to satisfy them thus it helps in increasing productivity as
well as profitability of the company.
 High Goodwill: Operation management helps in enhancing goodwill or brand image of
the company in order to achieve competitive advantage at workplace. Manager of Aldi,
emphasised on enhancing the efficiency of their staff members which helps in building
good reputation of business organisation in the market. On the other hand, leader of Aldi,
adopt effective leadership approach that helps in enhancing the morale and satisfaction
level of employees. The leader and manager of Aldi providing effective training for
increasing skill and knowledge of employees in order to achieve organisation goal within
a stipulated period of time.
 Quality management: quality plays a mojor role in success of any company because in
the upcoming days or present days the people aware in respect to quality of the products
(Wu, 2016). In Aldi, product quality is kept by the managers by acquiring new

technologies of their system. The manager of this company provide all the managers
activities in quality of its products which improve the changes that are occurred in a
company. They give the instructions and suggestions with proper quality of the product.
 Raising overall productivity:- The increasing productivity lead to be very essential
factor for the growth and success of an organisation, the mansger and leaders also plays
a important role within an organosation. With reference to Aldi the manager of this
company provides the satisfaction level to its customers and its rivals in order to raise
high productivity.
 Revenue increase: the increasing of the quality of its product and its customer
satisfaction so that they raise high goodwill in all over the market. This goodwill would
help in Aldi by attracting more customers and explore its high market share. This is
further helps in enlarging the market share with the high customer satisfaction.
TASK 4
P6 Various factors of business environment which lead to impact on operational management
and decision-making by leaders and manager
Business environment is defined as the accumulation of both the factors internal(micro)
as well as external(macro) which involves employees(personnel),customers(clients), economic
changes and various technologies and so on in order to determines the operations of an
organisation (yan Zhang and Van Den Bulcke, 2018). It is the idea which grasp the opportunities
of business so that they could aid in planning, rising of performance in order to increase the
growth, productivity and profitability of the company. The several factors which could lead to
impact while taking the decisions by a leader and a manager. In addition to this, it includes
internal and external factors which is classified as follows:-
Internal Factors
These are the factors which happen into the Aldi company and which affects the
functioning and future success. Internal factors are dominated within the company in order to
grow the productivity of a company. These are described as follows:-
 Value system- In the organisation the value system consists of code of conduct which
help to achieve the mission, goals and objectives. Further, it is considered the behaviour
of employees and customers (Argote and Hora, 2017). In context to Aldi, the value

system involves honesty and helathy realtions and clarity in respect to employees and its
customers. A leader and a manager took decisions which are based on ethical
circumstances and goals of a company.
 Human resource- Human resource is very important for every organisation which could
results in growth and increase profitability within an organisation. Human resource is nor
be strength or weakness for the organisation which look after on the skills and
knowledge while doing the work(Carter and Price, 2017). With reference to Aldi, the
manager of this company could took part in the participation of recruitment with a great
talent in a company. The selection is done in this company which are based on the talent
of an individual rather than focus on their experience.
External Factors
These are the factors which are far aside in the control of an organisation. Various factors
which affects the organisation instantly are described as under:-
 Legal factors: Legal factors plays a significant role in recognising the future success and
growth across the world. The changes which are occurred in laws that lead to the impact
on business functions. Each and every country has its own laws, policies and rules which
exclude the evolution of company in a particular country. With reference to Aldi the
leaders and managers took decisions which lead to retain more benefits of the company.
The decisions which are done while examine the legal factors and also which results in
the changes of business.
 Technological factors:- These includes the technologies which directly affects the
functioning of a company. Various innovations are done which leads to increase in
productivity and profitability of Aldi company (De Roover, 2017). This company has
large investments in acquiring new technologies for the product development. In
addition to this, it also decrease the cost production with lead to increase in the
effectiveness and efficiency of the products. The managers and leaders of Aldi company
take initiative while the decisions are taken in functioning of business and promotion of
technology. Various strategies which are implemented by the leaders that increase the
technological environment of an organisation.

CONCLUSION
From the above report it can be concluded as a leader and a manager which plays a very
crucial role in achieving the predefined goals and objectives of a company. By acquiring
fundamental concepts of functional management as well as managers and leaders of a company
that enables to improve the performance according to efficiency of employees in a appropriate
manner which lead to build highest quality of products and services. For instance, the use of
TQM in this report would enable the reduction of any conflicts in order to gain goodwill of a
company within the competitive edge. In addition to this, it also includes various environmental
factors which effect on taking the decisions while processing the functions of the company.

References
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