Introduction to Operations Management: Assignment

MANAGEMENT
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Role of leader and functions of a manger and its characteristics..........................................1
TASK 2............................................................................................................................................3
P2 Role of leader and function of manager.................................................................................3
P3. Leadership theories and approaches ...................................................................................5
TASK 3............................................................................................................................................6
P4 Key approaches of operation management............................................................................6
P5 Importance of operation management...................................................................................7
TASK 4............................................................................................................................................9
P6. Impact of business environment upon operational management..........................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leader is one who leads the individual and team towards achieving a shared goal of
organization. Leadership is an art of motivating the employees to achieve the pre set goals. In the
present assignment, company Starbucks is selected. Starbucks corporation is an American coffee
company and coffee house chain, which operates its operation at global level. In this project, the
role of leader and function of manager is being explained. Apart from this, different theories and
models of approaches of leadership is also being discusses under this report. As managing
operations is an important part for organization to achieve its objective, which is also described
in particular report. Beside this, the different factor of business environment is also assessed for
better operations management.
TASK 1
P1. Role of leader and functions of a manger and its characteristics
Management and operation is a practice which is used to increase the efficiency of the
organisation. Aim of this presentation is to analyse the roles and functions of Starbucks leader
and manger so that company can perform effectively. So it helps to achieve the organisational
goal.
Management and operation is essential tool which help the organisation to perform better.
It includes all activities which are needed to be manage by management like- planning,
organising, directing and controlling. All activities related to management and operation is
perform by the manager and leader of Starbucks. Leader is that person who has power to
motivate and influence its team members to achieve the organisational goal. Manager is that
person who manage the operations in the organisations and also responsible for the management
in the company. Both manager and leader helps the company to achieve its goal. They manage
and influence persons to perform better so performance and productivity can be increase. If
persons will perform efficiently than organisation can achieve sustainable success and growth.
Starbucks has good manager and leader in its company and they perform their duties very well.
Role of leader and functions of manager are as follows-
Role of Leader Function of Manager
Leader of Starbucks leads and influence it team Manager of Starbucks manage and influence
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members. the whole organisation.
Leader of Starbucks manage its group
members of its team.
Manager of Starbucks manage the whole
members of the organisation.
Leader participate in the work of its team
mates because it will be responsible for the
better performance of its team mates.
Manager of Starbucks is responsible for the
performance of its whole members of the
company.
Leader of Starbucks focus on the day to day
activities of its group members.
Manger of Starbucks notice the activities of all
members on weekly or monthly basis because
they do not have enough time to monitor the
things regularly.
Leader of Starbucks focuses on how its team
members have to perform a particular task in
the company.
Manager of Starbucks focus on what should be
performance of persons in the organisation.
Leader of Starbucks follow the traits theory of
leadership because they believe that leaders are
born, not made. According to this theory
leadership quality is inherent in persons.
Starbucks believes that management quality in
manager can be developed by training.
Characteristic of leader and manger:
Leader Manager
Leader of Starbucks focuses on leading
people.
Starbucks manager focuses on managing work.
Leader of Starbucks follow the planes and
polices as per the instruction of manager.
Manager makes the plans and policies for
whole persons in the organisation and persons
have to follow it.
It manage the group of members in his team in
Starbucks.
It manage the whole persons in the Starbucks.
It has motivating and influencing power. It has managing power of organisation in
Starbucks.
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It is essential for the organisation that its management and operational activities should
be effective so that company can perform better. Leaders and manager of Starbucks has
following its roles and responsibilities in good manner and able to motivate and influence the
persons of the company.
TASK 2
P2 Role of leader and function of manager
A leader is the person who inspire an individual or a team for successfully attainment of
shared goal of organization. There are various roles of leader which needs to be performed for
formation of a better team in Starbucks. These roles are as follows:
Knowledge of Individual Skills:
It is very important role of leader, that one must be aware about skill set of every
individual. The leaders of Starbucks should be aware of its employees capabilities, so they can
effectively delegate the tasks to employees for accomplishing tasks (Ahi and Searcy, 2013).
Effective Coaching:
The leader should serve as a mentor or as a teacher to its team members. There should be
a two way communication rather than one way. As it will be aid in achieving the Starbucks goal
of profit maximization.
Motivation:
The primary role of leader is to motivate its team to give their best efforts for completion
of given tasks. The leaders of Starbucks must motivate its employees for the effective
performance of individuals and team.
Barrier Buster:
A team might face the various barrier, while stepping towards the goal. So the leaders of
Starbucks must play a role of barrier buster for its team (Barton and Court, 2012). So they can
complete the task smoothly and on time also.
Functions of Manager:
There are basically five management concepts that enables the managers to handle the
tactical, planned and set decisions. These can be used by manager of Starbucks to tackle the
various operations. These are as follows:
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(Source: Functions of manager, 2017)
Function of Manager
Planning:
Planning is the process for making plans for future activities of organisations. The
managers of Starbucks can use this tool for preparing the blueprint for the future. This blueprints
will help the manager to foresee the problems, evade difficult issues and to take competitive
advantage.
Organizing:
Organizing is getting prepared and organized for the tasks. The manager of Starbucks
should organize it’s all resources before they start their work. A well-managed resources will
help in improve the efficiency of employees.
Staffing:
The large organization like Starbucks, managers of company often work with human
resource department, to acquire the talent according to task requirements. The managers are the
one who are aware about the vacant position and skill needed for that position. So it helps the
human resource management of company to acquire best and required talent.
Directing:
Directing is process of activating the efforts of employees towards the achievement of
organizational objectives. The manager of Starbucks implements the plan by mobilising
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individual and group efforts through motivation and supervision (Cachon, 2012). It is one of the
major function in which an organisation used to sets rules and gives orders to their sub-ordinates
Controlling:
Controlling is the process of regulating the ongoing activities of organization. Through
the controlling function, Starbucks management can keep the organization towards its chosen
track. And it helps in establishing standard performance, measuring current performance and
comparing actual with standard performance. It consists of testing employee performance as per
the standard which are set by the management through discovering specific reason for minimum
efficiency. At the end, evaluating the best situation and performance of employees are taken into
account.
P3. Leadership theories and approaches
Leadership plays an important role in the growth of organisation. Leadership is the ability
of person to leads the group of people by motivating and influencing them. There are many
approaches which are followed by the leaders of Starbucks. These approaches are such as
follows-'
Situational leadership approach:
In Situational leadership approach leader takes decisions on the basis of situations which
are arises in the organisation. For example, there is a situation arises in the Starbucks that they
have to make 2000 coffee within one hour because order has been already taken by the company
and it cannot delay in its service. In this case Starbucks can shift the launch time of its employees
and give order that they can take their launch after 30 minutes in respect of their normal time. So
that company can meet the requirements of its customers and provide its service within one hour.
It is good for organisation because company can know the efficiency of its employees and
leaders in these situations which are arise occasionally.
System leadership approach:
System leadership approach is follows by the leader and they have to perform according
to the organisational plans and policies of company. For example, there is system in the
Starbucks that all leaders will give training to its new team members before they start work. It
helps to increase the efficiency of the employees (Carter and Liane Easton, 2011).
Contingency leadership approach:
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Contingency leadership approach is followed by the leader when any uncertainty arises in
the organisation. For example, If Starbucks does not have sufficient milk to make coffee. To
meet this emergency company can buy milk from open market at higher price because
organisation cannot satisfy its customers. Leader of Starbucks take this decision to meet this
contingency. It shows the dedication of leaders which is good for the company.
Operation management theories-
Six sigma:
Six sigma theory is used to minimise the defects and errors in the organisation. Starbucks
use this theory to minimise the defects in inventory of milk in the organisation by using just in
time delivery system because managers stock the milk beyond its regular requirement. It helps to
minimise the excess inventory cost.
Lean production:
Lean production theory is used by the management to cut excess cost in the production.
Starbucks can use lean production to minimise the cost of its coffee so profit margin can be
increase. This particular method can be applied to all aspects of a business from design through
production to overall distribution. It is systematic production approach that can be used for the
purpose of eliminating waste within the production system. The main objectives are to design all
the activities in order to attain high level of production through using low level of inventories.
Queuing theory:
Queuing theory is use to minimise the delays of waiting in lines. Starbucks can use this
theory in its organisation so customers do not have to wait for getting service. Consumers do not
have to make lines to get coffee so organisation try to reduce the waiting time of customers. It
helps to make service fast in the Starbucks (Diabat and Govindan, 2011).
TASK 3
P4 Key approaches of operation management
Operation Management:
Operation management is concerned with planning, organizing and supervising the
production process and the business operations in the most efficient manner. The operation
management helps business to operate efficiently, both in terms of using resources and meeting
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customer requirements. There are different approaches which can be used by the Starbucks to
achieve the organizational objectives. These are as follows:
Total Quality Management:
It is the continual process of detecting and reducing the errors in manufacturing,
streamlining supply chain, improving customer experience and ensuring employees are speed up
with their training. It is considered as a customer centric process and aims for continuous
improvement of business operations. Starbucks has achieved new heights by using quality
management. As they maintain the same quality globally and it attracted the consumers (Hübner
and Kuhn, 2015).
Just in Time Inventory:
This system is about maintaining regular inventory in business effectively and efficiently.
The system helps company to cut excess cost of warehousing and generate more revenues. It
enables business to aligns raw materials orders from supplier directly with production schedules.
This strategy increase efficiency and decrease the waste by receiving only those goods which
needed for production. The company Starbucks can use this system to minimize the waste and
maximizes their profits (Jacobs, Chase and Lummus, 2014).
Kaizen or Continuous Improvement:
Kaizen is a Japanese term means, “Change for Better” or “continuous improvement”.
This main aim of this is to make small changes over a period of time to time to create
improvement within company. The managers of Starbucks can empower their workers to be
vigilant in production process and make improvement in process where needed (WUWANG and
CUI, 2013 Ehlers, 2012).
Role of leaders and managers to improve efficiency:
The leaders and managers are those who continuously monitor the work process in
business. They have the knowledge about process and they can help to improve efficiency of
operational management to achieve business objectives. The way to improve efficiency are as
follows:
Equipment Upgrades:
The technology is changing very frequently in today's time. The managers keep tracking
operations of business, so they are aware about that, which equipment needs to upgrade and
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which need not. As the managers of Starbucks can upgrade the equipment’s according to need,
so the overall efficiency of operations can be increased.
Communication Coordination:
The improved communication within an organization can increase productivity. The
managers and leaders are responsible for making sure that, the tools which are necessary to
facilitate efficient communication are in place. As an example manager of Starbucks can setup
an adequate computer accounting system that calculate current inventory and send information to
the manufacturing department. So by these ways efficiency can be enhanced (Large and
Thomsen, 2011.).
P5 Importance of operation management
Operation management plays a vital role to run a project successfully. The major aim of
operation manager is to ensure timely delivery of the products and to successfully turn the raw
material into finished products. There is various importance of operation management which are
as follows:
To manage daily activities:
Operation management is very helpful for organizations to manage daily activities
seamlessly. The management of operations enables a company to make the good use of its
resources like, labour, raw material, money and other resources. As if Starbucks uses their
resources in efficient way then they can get benefited out of this (Ehlers, 2012).
Improves overall productivity:
The operation management is very helpful in improving productivity. The ratio of input
to output is termed as productivity. As if Starbucks focuses on using the available resources in
the best possible way to achieve goals, then overall productivity will be improved.
Helps in providing customized products:
It is the management of various business activities that take place within an organization
and share in making customized products. As it controls entire operations, so with the proper
operation management, Starbucks can provide the products according to customer requirement.
And they can sell it at desirable price (Lee, 2011).
Helps in maximizing profits:
Operation management plays and important role in the company, as it takes care of issues
like design, operations and maintenance of the system used for production of goods. Under this
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management, there is optimum utilization of resource, which leads to generation of profits for
company. The Starbucks can also maximize their profits by optimum utilization of resources.
Helps in reducing cost:
Cost is incurred by the companies for manufacturing a product. The higher the cost of
material leads to higher the cost of production. So with the help of managing the operations of
business efficiently, one can reduce the cost of product. The Starbucks can reduce the cost by
managing the resources efficiently and can increase profits (Christopher, Tsikalakis and
Hatziargyriou, 2011).
Customer Satisfaction:
The customer is king of market, if company is able to meet its customer requirement then
company can get new heights in market. As with the help of operation management products are
available to customer at right place, at right price, at right time, in desired quantity and of desired
quality. So management of Starbucks can fulfil the needs of its customers by proper operation
management in organization.
Competitive advantage:
The competition is very tough in market and everyone wants to take competitive
advantage. As by proper management of its operations in business, one can earn the competitive
advantage. Operations managements helps in using optimum resources and if company is
managing its resources at optimum level, then the cost of product will be lower. And one can sell
its product at affordable cost to its customers and can get competitive advantage (Jacobs, Chase
and Lummus, 2014).
TASK 4
P6. Impact of business environment upon operational management
Business environment can make impact on organisational management and its
performance. It has divided into two parts- micro and macro factors. Micro factors are the
internal factors or elements in an organisation can affects the performance and decision-making.
These factors are customers, suppliers, distribution channel etc. Macro factors are external
factors which can affect the business environment of organisation. It includes- political, legal,
economic, social, technological and environmental factors. Explanation of micro factors-
Suppliers:
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Suppliers are those persons who supply the material to the company. For Starbucks their
suppliers are milk provider and if prices of milk will increase then it affects the organisation.
Company have to pay more to the suppliers and through it profit margin can be decrease.
Distribution Channel:
Distribution channel is that channel of company who distributes its goods and services to
the customers. For Starbucks, its shops all over the world is the distribution channel of the
company because it provides the goods and services of company to all consumers of the
organisation. Macro factors which can affect the business environment such are follows-
Political:
Political factors of country can affect the business environment of company. Political
factors are controlled by the government of country. Starbucks can affect by the political factors
if government increase the trading tariffs. High taxes can decrease the profits of the organisation.
Economic:
Economic factors of a country can affect the business environment of company.
Economic factors include inflation rate, exchange rate, interest rate etc. Starbucks can have
affected when inflation rate is more but consumers do not have enough money to spend. It can
affect the sales of the organisation (Nakamura and Abe, 2014).
Social:
Social factors of a country can affect the business environment of the company. It
includes age, gender, culture norms etc. Starbucks can have affected through it when people of
society does not like the products and services of the organisation.
Technological:
Changes in technology can affect the business environment of the company. Technology
is updating very frequently and if Starbucks does not have updated technology then it can
decrease the sales of organisation.
Environmental factors:
Environmental factors can affect the business of organisation. In Environmental factors
of a country can be include raw material. Starbucks can be affected through it when country does
not have sufficient raw material which are needed by the Starbucks (Drucker, 2012).
Legal:
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Legal factors of a country can affect the business of the organisation. It includes- health
and safety, consumer’s rights and law. Starbucks can affect through it when it does not protect
the consumer’s rights and law which are needed to be protected.
In the wider contexts
Legal factor:
Legal factor is that factor which decide that company is doing rights things to protect the
interest of customers. For example, if government announces that companies have to spend 2%
on Corporate social responsibility out of its profits. If Starbucks will be paying to start 2% on
CSR activities, then it can reduce the profits of the company.
Culture:
Culture can affect the organisational environment. Culture includes taste, habit,
preferences of persons. Starbucks can have affected through it when taste and food habits of
consumer will change and then they will not like the products of company. If taste and food
habits of customers will change then sales of organisation will decrease and its affects the profit
of Starbucks (Norrie, Swing and Mayer, 2012).
CONCLUSION
As from the above report, it has been concluded that management and operation in the
organisation is important for the sustainable growth of the company. It has certain theories and
approaches of management which are needed to be followed for the effective growth and
management of the company. In the chosen organisation leader and manager of Starbucks has
follow their roles and function and implement different theories and approaches of leadership to
achieve the goal of organisation. Apart from this, effect of business environment upon
management and operation has also analysed for effective management.
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