Management and Operations - Harrods Case Study

This report explores the various dimensions of operations and management within Harrods. It compares the roles and characteristics of leaders and managers, examines their roles in different situations, and applies different models and theories to operations management. The report also explains key approaches to operations management, including Six Sigma, Lean Manufacturing, and Business Process Redesign.

Management and
Operations

EXECUTIVE SUMMARY
Management and operations of a business comprise of the various activities such as organizing,
directing and planning. The present report is on Harrods and explores various dimensions of
operations and management within the organization. The leaders and managers have different
roles and characteristics. The report found that the role of a leader and function of a manager are
different as per the situations such as situation of a change, or of managing peak loads. The
various models of leadership are efficient. These include situational, systems and contingency
leadership. Harrods can use six sigma and lean manufacturing as the approaches to operations
management.

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Definition and comparison of the roles and characteristics of leaders and manager.............1
P2 Examining the role of a leader and function of manager in different situations....................2
P3 Application of different models and theoris...........................................................................3
P4 explanation of key approaches to operations management....................................................5
P5 Importance of operations management in achieving objectives.............................................6
P6 Assessment of factors impacting operational management....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The activities related to planning, organizing and directing so that the functions and
processes of an organization are controlled, constitute management and operations of a business.
These functions are performed by leaders as well as managers (Ravinder and Kollikkathara,
2017). However, their roles are overlapping within the organization. Harrods is a large retail
organization located in the UK. It has 330 departments that offer products and services of a wide
range. The purpose of the present report is to focus on the role of leader and manager within
Harrods. These roles have been applied in different contexts. Further, the report also analyses the
relationship between leadership and management in a contemporary business environment.
Definition and comparison of the roles and characteristics of leaders and manager
A leader is defined as a person who is responsible for influencing the behavior of his
followers by directing and guiding the, towards achieving the goals of the organization.
A manager is defined as a representative of the organization who has the responsibility of
managing the work of a group of employees. He also takes the required actions when there is a
need.
Roles of leader and manager at Harrods
The role of a leader and manager at Harrods are different from each other in the following
manner:
Role
The role of a leader is to provide direction to the employees which he does by creating and
communicating the vison (Enyinda, 2017). He also encourages them to work towards the mission
of Harrods. As compared to this, the role of a manager at Harrods is to formulate the structure of
the organization. He also delegates the required responsibilities and authority to the employees.
Approach
A leader has a proactive approach while as compared to this, a manager adopts the approach
which is reactive.
Authority
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The authority of a leader is informal which is formed on the virtue of his personal qualities.
As compared this, the authority of a manager is formal on the basis of his positional and role
(Dekker and et.al., 2021).
Motivation
The role of a leader is to focus on intrinsic motivation. he makes the process of
motivating employees as intrinsic. As compared to this, the role of a manager is to focus on the
extrinsic process of motivation.
Comparison of characteristics of leaders and manager at Harrods
The key attribute of the reader at Harrods is foresightedness. This includes the qualities
of caution, prudence and forethought. As compared to this, the manager at Harrods is required to
have the quality of prompt decision making as well as coordination. There are a number of
business situations which need to be dealt tactfully (Choi, Wallace and Wang, 2018). Also there
are situations where quick decision making is required. These are the situations where he
qualities of a manger are utilized.
Further, a leader has characteristics of articulating a clear vision and driving the team
towards it. In contract to this, the manager at Harrods sets objectives and motivated the team
members to achieve them. While a leader takes care about maintaining the enthusiasm of the
team, a manager focuses on organizing the tasks and ensuing that they are achieved on time with
right strategy. Another characteristic of a leader is that he sets an example before his followers.
Leaders at Harrods adopt the approach of ‘practice before you preach’. In this way, the motivate
the team members to adopt right behavior and approach towards achieving the tasks. As
compared to this, managers ensure that all the employees in the team have adequate resources
that are needed to succeed.
Examining the role of a leader and function of manager in different situations
The role of a leader and function of a manger are different depending upon the situations. These
have been explained as follows:
Situation of managing a change
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There are situations when organizations like Harrods have to bring a change. This change
needs to be assimilated within the organization at all the levels. However, introducing a sudden
change often leads to resistance from staff. Therefore, it is important that the change is managed
appropriately so that it is accepted and brings the desired results.In such situation, the leader at
Harrodsact as advocates for change. They play the role of representatives who present the change
before their peers (Cachon, Girotra and Netessine, 2020). Leaders at Harrods demonstrate those
behaviors and attitudes which they want the team members to depict. As they show consistency
between words an actions, the team members are encouraged to follow them. This leads to
appropriate management of the change. Moreover, leaders are the face as well as the voice of
change. They offer encouragement to the employees by keeping them updated about the
information through effective communication. Furthermore, leaders engage the employees in the
change by creating a sense of urgency. In this way, they create a passion which helps in
achieving the desired results. Most importantly, the role of leaders during change management
can be seen in the situation when they hold the people accountable for the change. This leads to a
sense of responsibility within the employees who then work together to bring about the change.
As compared to this, the manager at Harrods has various functions during change
management situations. Manager ensures that the employees have the necessary resources and
training for implementing the change (Lohmer and Lasch, 2020). For this, the manager makes
plans regarding the training and development needs of the employees. Through this, the
managers equip the employees with the necessary skills required for bringing the change and
sustaining it. Therefore, change management becomes a smooth process and the resistance of
staff is eliminated.
During peak work load
Every organization has working cycles which are characterized by seasons of peak load
followed by less load. During the time of peak workload, there are a number of tasks lined up
which are to be accomplished within the short deadlines. These are the situations which require
dedication, commitment and consistency from employees. During this situation, the leader plays
the role of a motivator (Meredith and Pilkington,2018). By engaging the team and closely
bonding them with the objectives and mission of the organization, the leaders at Harrods
motivate the employees to show their cooperation and commitment to work. In this way, the
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leaders manage the peak load of work effectively. As compared to this, the managers function as
effective coachduring these situations. The managers at Harrods organization various training
and development sessions. They also organization the tasks and plan them in a manner so that
they are deliver on time.
Application of different models and theories
Situational Model
This is known as a leadership style which is adaptive. This can be applied at Harrods in
the following manner. The leaders at Harrods weigh the various variables and options available
to them. Following it, they choose the best option which is suitable according to the goals as well
as the circumstances. Asper the Goleman theory of situational leadership, the leaders at Harrods
play various roles namely coaching, pacesetting, democratic, affiliative, authoritative and
coercive leaders. By employing the various roles according to the suitability of the situation, the
leaders then follow various stages of employee development (Magon and et.al., 2018). The level
at which the employees are determines the role that the leader has to adopt. In this way, the best
role is adopted which suits the circumstances. Situational leadership style has various
characteristics such as flexibility, problem solving and insight. The advantages of this style is
that it is convenient to be used and can be made suitable to the current situation and context.
Systems Model
This is a leadership style in which the leaders create such conditions in the working
environment which encourage and enable the employees to work productively to their fullest
potential (Fahimnia and et.al., 2019). Harrods implements systems leadership by creating models
of good leadership and organization strategy. It also includes establishing systems design and
social processes. With systems leadership, the leaders at Harrods get tools that assist them in
predicting the behavior of employees within the organization. Furthermore, under this leadership,
the chosen organization focuses on building effective systems which lead to productive behavior
of the staff. In this manner, organization’s purpose is realized in a better manner. Harrods
implements systems leadership by laying emphasis on the set of skills and capabilities which can
be used by the leaders and managers to catalyze as well as support the process of systems- level
change. In this approach, collaborative leadership at Harrods is combined with coalition building
which assists in mobilizing innovation and action throughout the business.
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Contingency Model
As per the contingency theory of leadership, the effectiveness of a leader depends on the
suitability of the leadership style to a particular situation. This indicates that as per this theory, a
person can be an effective leader in one situation but an ineffective one in the other
(Agrawal,Atasu and Van Wassenhove, 2019).In other words, this theory emphasizes that there is
no one best way in which an organization can be led. Harrods makes use of least preferred co-
worker scale to determine whether the managers are task or relationship oriented. This helps in
knowing the subordinates well and making strategies and plans for improvement accordingly.
Contingency theory can be further applied at Harrods by channeling the focus of the
management towards achievement of alignments and good fits. Therefore, it is important for the
leaders at Harrods to understand their leadership style as well as the situation prevailing within
the organization.
Explanation of key approaches to operations management
Following are the key approaches to operations management that can be adopted by Harrods:
Flexible specialization
This is a dominant system which comprises of economic production and consumption
phenomena. Harrods can use this as a business strategy whereby the organization can adopt
permanent innovation and multi- use equipment. Using this, a wide array of customized products
can be manufactured by using machinery which is flexible and general purpose. Leaders play the
role of a motivator and give direction to the plans and strategies of the organization for
implementing this approach (Cachon, Girotra and Netessine, 2020). In contrast to this,
managers play the role of a facilitator who ensures that the necessary resources and support is
available to the employees for undertaking the planned strategies.
Lean manufacturing
Lean manufacturing is also known as Just in time production because the aim of this
approach is to reduce the time consumed in the production process. Further, it also aims to
reduce the response time associated with suppliers and customers. Lean manufacturing is an
approach to operations management which deals with elimination of waste that is generated
during the production process. The waste that is generated during the uneven workloads is
identified with the help of lean manufacturing method. As per this theory, resources should
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only be used for creating value rather than for any other reason. Therefore, in this way,
wasteful expenditure of resources is eliminated to a great extent. These wastes comprise of
those processes and services which consume time and skills but do not generate any value
(Kumar, Mookerjee and Shubham, 2018). On removing these, the costs can be reduced by
streamlining services. as a result of his, savings can be provided for a particular product
throughout the supply chain. Another way in which lean manufacturing can be implemented
at Harrods is through ‘Toyota way’. This method focusses on bringing improvements in the
workflows instead of reducing the waste.
Business process redesign
This approach to operations management is concerned with analysis and design of
workflow as well as the various processes of business. The main purpose of this approach is
to foster the restructuring of organizations by redesigning the processes at the ground level to
the senior level. In order to incorporate the accelerated change in structure and other
components, designing of various manufacturing systems are done which are reconfigurable
(Mahmoudi and Parviziomran, 2020). As a result of this, the systems of the organizations are
able to adjust to the suitable capacity in a rapid manner. It determines the extent of the
efficiency with which these systems function in response to the changes in the market as well
as the intrinsic systems.
PDCA Cycle
This approach involves a continuous loop of planning, doing, checking and acting. This
approach can be used by Harrods for problem solving and change management. Through this
model, improvement measures can be tested on a smaller scale which later can be implemented
on larger scale. Harrods can implement this approach by using the various steps of the cycle for
solving the problems at hand. Further, Harrods can also perform small scale testing of planned
improvement measures. On achieving success at small scale, these measures can be implemented
on a large scale (Agrawal,Atasu and Van Wassenhove, 2019).
Six sigma
This approach lays emphasis on the quality and consists of quality – control tools that are
be utilized by businesses for elimination of defects. It also assists in bringing improvements
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in the processes which provides a boost to the profits of the organization. As a part of the six
sigma approach, Harrods is required to focus on meeting customer requirements and
improving their retention. Further, the organization is also required to sustain products and
services. in this approach, a team of people is led by six sigma champion and focuses on the
faulty process. The initial performance of the process is measured (Mišić and Perakis, 2020).
Each input of the process is isolated and tested for the root cause of the problem. Analytics is
used by the team to identify the causes for the errors in the process. After identification of the
error, actions are taken by the team for improving the performance of the concerned system.
Further, as a part of the six sigma approach, the team adds various controls to the process to
check the reoccurrence of the problem.
Operations management approaches
Production based approach: Through this approach of operations management, Harrods can lay
emphasis on the quality of products. This approach considers quality as a variable which is
precise and measurable. Therefore, Harrods can easily identify the differences in quality of its
products as these differences will also be reflected in the attribute possessed by the product.
Market based approach – Harrods can use this approach to operations management by focusing
on the markets and the customers and making decisions accordingly. Through market based
approach, the organization can make decisions regarding the market and meet customers’ needs
in a better manner negatively (Cachon, Girotra and Netessine, 2020).
Resource based approach – This approach can be implemented by Harrods by adopting an
internal perspective for explaining the unique bundle of internal resources and capabilities. This
forms the foundation for building value creating strategies. This approach can direct Harrods to
use its resource in the best manner so as to achieve competitive advantage.
Systems based approach – As per this approach Harrods has to consider that there are various
systems which act as a set of integrated parts and must work together. Therefore, an organization
is composed of marketing, operations and finance sub systems which must work together to
achieve the organizational goas and objectives. Systems approach to operations management lays
emphasis on the interrelationships that exist between different subsystems.
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Importance of operations management in achieving objectives
Operations management is important in achieving the objectives at Harrods. It
encompasses all the activities which plan and supervise the manufacturing and production
processes. At Harrods, it assists in effective management of processes as well as people.
Operations management plays a central role in managing the production of goods and services
(Babich and Hilary, 2020).
The main objectives of operations are:
 To provide better customer service through various strategies and steps
 To utilize the resources of the organization for satisfying the needs and wants of the
customers
The objectives of Harrods are related to achieving the position of best retailer in UK. It
also aims to increase its customer base and expand internationally. Successful achievement of
objectives is facilitated by effective operations management strategy of the organization. This is
because efficient management of operations leads to better management of people, equipment
and technology. With operations management, there is better planning and controlling of
operations which leads to meeting the objectives set by the organization. All these factors play a
major role in assisting the achievement of objectives of organization.
Efficient operations management (OM) helps in standardization of work. Operations
management works with the objective of being involved in the designing of end service as well
as the delivery process. Therefore, the processes are designed comprising of logical steps which
assist in bringing overall efficiency at Harrods. Moreover, operations management also leads to
continuous improvement through innovation. It plays a prime role in improving the overall
performance of the organization. Efficiency and training gaps can be effectively identified with
the help of efficient operations management. In his way, it assists in achieving the objectives of
the organization. Another importance of OM is in planning. The professionals in OM are
committed towards collaboration with other executives and managers which helps in aligning the
operations management strategy with the overall long term strategy of the organization (Anand
and Gray, 2017). This planning comprises of setting objectives aligned with the objectives of the
organization, determining budget and support services required for achieving them.
OM professionals provide direction to the other aspect of the business regarding
achievement of specific objectives. They ensure that the necessary work is completed by all the
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departments linked to the productivity goals as well as the budgetary guidelines of the
organization. Customer satisfaction is an important benefit that is provided by efficient OM. One
of the objectives of Harrods is to increase its customer base which can be successfully achieved
by providing them satisfaction through products and services. OM not only takes care of the
quality of products and services being delivered to the customers but it also ensures that the
organization meets their needs. Through OM, Harrods is able to deliver products on time thus
increasing the satisfaction level of the customers.
One of the most important functions of OM is to ensure that the products are designed in
a manner which makes them durable as well as sustainable. In this way, OM guarantees the
quality of the products and services being delivered to the customers. Reliable and durable
products go a long way in retaining customers and attracting newer customers from positive
word of mouth. Waste reduction is also an important component of OM which leads to cost
saving and makes the processes more efficient. This further assists Harrods in achieving its long
germ objectives.
It is important for the operation manager to ensure that the following perspectives are
followed for achieving the objectives of the operations management. These are:
 Quality- The quality of products as well as services and manufacturing processes
need to be considered in order to achieve the objectives of operations
management.
 Speed- the manager also needs to ensure that the work is undertaken in definite
speed so that the tasks are completed on time.
 Dependability- It is important for the operations manager to consider the ways in
which one process is dependent on another. This is required for ensuring smooth
flow of operations.
 Flexibility- The operations manager is required to adopt flexibility in processes.
This will further help in achieving the objectives of the operations management
successfully (Mišić and Perakis, 2020).
 Cost- This is the important perspective that need to be considered for successful
achievement of operations management objectives at Harrods.
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P6 Assessment of factors impacting operational management
The operational management and decision making by leaders and managers is impacted by the
following factors of business environment:
Internal factors
 Financial resources: Operations management (OM) functions and strategies need to be
in accordance with the financial resources available with the organization. Availability of
sufficient financial resources at Harrods has positive impact on operation management as
it leads to smooth implementation of various strategies.
 Physical and human resources: The various tasks relation to operations management can
only be performed if Harrods has people resources with the required skills set. Also,
infrastructure and machinery are other physical resources which impact operations
management at Harrods.
 Technological capabilities: Efficient technological capabilities favour operation
management functions. This factor directly impacts various approaches of operations
management such as lean manufacturing, six sigma etc.
 Management structure: This is a factor that is responsible for fostering better
organizational culture which indirectly supports functions of operations management.
Also, management structure is a factor which determines the flow of work and
information. Therefore, it impacts operations management.
 Mission and objectives of the business: This internal factor impacts OM as its strategies
need to be aligned with the mission of Harrods as well as its objectives.
 Culture: the culture of Harrods plays an important role in keeping the employees
motivated and satisfied and encouraging them to work in a productive manner. This
directly impacts OM.
 Values: The values of organization impact the way in which different tasks and activities
related to OM are undertaken and completed.
 Work environment and ethics: these significantly impact OM functions and activities
because while adopting OM approaches, the ethics have to be taken into consideration.
This essential to void any future ethical issues.
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 CSR: The OM approaches and functions need to be such that Corporate Social
Responsibility is followed. Therefore, this is also an internal factor that impacts OM.
External factors – Micro environmental factors
 Shareholders: They influence the objective of the business based on which the OM
objectives are designed. Therefore, shareholders impact OM in a direct manner.
 Investors: A major role is played by the investors in the success of an organization. The
operations management strategies are of significant interest for the investors as they need
to ensure that sufficient returns will be obtained from those strategies.
 Suppliers: They impact OM by providing high quality products to Harrods. In this way,
the aid in initiation of operations management processes related to production.
 Employers: They impact operations management by formulating various strategies and
processes for the business. The OM strategies have to be aligned with the strategies
formulated by the employer for the business.
 Competitors: They significantly impact the OM at Harrods because various practices and
approaches of OM have to be designed in a way which provide competitive advantage to
the chosen firm.
 Customers: An organization performs all its activities to meet the needs of the customers.
Therefore, the OM processes need to be designed in a manner that enable Harrods to
design products and services that successfully meet the needs of the customers.
External factors- Macro- environmental factors
Political factors: These include government policy, political conditions etc.
Advantages:
 Favourable government policies help in successful establishment of business
 Better political conditions lead to the growth of Harrods
 Favourable labour laws assist the firm in increasing its productivity and customer base.
Disadvantages:
 Political instability in the country negatively impacts the growth of business
 Strict foreign trade policy also restricts the international expansion of the business
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 Trade restrictions also affect the business operations negatively.
Economic factors: These include factors such as economic growth, exchange rates etc.
Advantages
 Economic growth of the country leads to the growth of the business as well.
 Favourable interest rates further help in increasing the profits of the business
 High disposable income of the consumers make them purchase more goods and services
thus adding to the profits of the firm.
Disadvantages:
 Low unemployment rates negatively affect the business as there are less skilled people
available.
 High Inflation rates make people purchase less products thus decreasing the sales of the
business.
Social responsibilities
Every organization including Harrods has to fulfill certain responsibilities that it has
towards he society and community. It also has to make contribution towards solving social issues
concerning the area in which it operates. Therefore, this impacts the OM processes which have to
be aligned in order to ensure that they do not impact environment and society negatively
(Cachon, Girotra and Netessine, 2020). The leaders and mangers are also required to take
decisions in a manner which takes into account the impact of organization on society as well as
environment.
Advantages
 Following the consumer tends provides an opportunity to the business to bring
innovations and stay ahead of its competitors.
 It is also able to deal with the culture differences and tackle such issues in a better way.
Disadvantages
 Harrods has to use extra resources in order to follow the social trends.
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 It has to constantly change its products according to customer attitudes which leads to
additional costs.
 For this, it as to provide training to its staff leading to increase in expenditure of the
organization.
Technology advancement
In order to make the manufacturing and other processes convenient, it is important for
Harrods to adopt the updated technology. This impacts OM as the organization is required to
make decisions related to using advanced technology which enables the firm to compete in the
global environment. In order to successfully implement the technology, training and
development decisions need to be taken by the managers and the leaders. This is required so that
the new technology can be used in the best possible manner.
Advantages
 It helps the firm in constantly improving its level of innovation.
 It also improves the technological awareness of the organization.
Disadvantage:
 Automation of the processes requires financial resources.
 Research and development activity that has to be undertaken as a part of the
technological advancement also requires the organization to spend on training and
development of employees.
Environmental factors: These include weather climate, environmental policies etc.
Advantages:
 Following the environmental policies creates a goodwill of the firm and improves its
image in the eyes of the customers.
 It also presents the firm as a business that takes care of the climate change which is a
burning issues negatively (Cachon, Girotra and Netessine, 2020).
 It forces the organization to adopt process that protect environment.
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Disadvantage:
 Adopting ecofriendly process as a result of the environmental factor lead to additional
costs.
Legal considerations
There are a number of legal considerations, rules and laws which need to be followed. The
operations management processes need to abide by these laws. Also, the managers and leaders at
Harrods need to ensure that they comply with the laws while making important decisions for the
organization related to product material, quality, and employees.
Advantages:
 Copyright and patent laws assist in protecting novel inventions and innovations of the
firm
 Following various employment laws prevents the firm from future issues.
 Health and safety laws prevent Harrods from risk and future harm.
Disadvantage:
 In order to follow al the laws, extra costs are incurred for the organization.
 It also has to keep additional staff for ensuring that the laws are followed.
CONCLUSION
From the report, it can be concluded that the roles of a leader and a manager at Harrods
are different. While a leader focuses on communicating and bonding the employees with the
vision of the organization, a manager lays emphasis on proper organization of tasks. A manager
ensures that the employees have the necessary resources for accomplishing a task. The systems
theory, contingency and situational leadership theory can be applied at Harrods in different
manner. Six sigma, lean manufacturing and business process redesign are key approaches to
operations management. These help in reducing waste during prediction these also assists in
optimum utilization of resources. Operations management is extremely important for achieving
the objectives of Harrods. It helps in proper organization of tasks and their timely completion
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thus helping the firm in achieving its short as well as long terms objectives. There are various
factors which impact upon the operational management and decision making by leaders and
managers.
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