Management and Operations in Sainsbury: Analysis of Theories and Recommendations

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Structure of organisation..............................................................................................................3
Definition of managers and leaders and their differences...........................................................3
Differences between manager and leader....................................................................................4
Analysis of role of management in different situations through application of different theories
.....................................................................................................................................................4
Strengths and weaknesses and critical analysis of theories.........................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................6
PART 2............................................................................................................................................7
Operations in Sainsbury...............................................................................................................7
Key operational areas of business................................................................................................8
Marketing.....................................................................................................................................8
Human Resource Management....................................................................................................8
Key operational approaches to operations management.............................................................9
External factors which affect decision-making of managers and leaders..................................10
Improvement in operational efficiencies of organisation for meeting business objectives.......10
CONCLUSION AND RECOMMENDATIONS..........................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The study is on management and leadership and their impact on the company’s operations. The
organisation taken for study is Sainsbury. Sainsbury is a retail supermarket organisation
operating in UK. Management role of leaders and managers have been defined and differences
between them have been highlighted. Different roles of management and leadership have been
described in different organisational situations. Evaluation of weaknesses and strengths of
different approaches for leadership and management have been drawn that support theories of
leadership. Key operations of the organisation were highlighted. The operational functions of the
organisation have been described and the roles and responsibilities of managers have been
illustrated. The key operational approaches to operations management and their value have been
described. The impact of external business environment factors affecting decision-making by
managers and leaders has been provided. The operational efficiencies can be improved for
meeting business objectives using leadership approaches and appropriate management.
Recommendations for improvements to be taken for the organisation have been discussed.
PART 1
Structure of organisation
Sainsbury is public limited company which has limited liability. Sainsbury has four main
shareholders and Qatar Holding LLC holds majority of shares of around 26%, while Lord
Sainsbury holding 4.99% of shares, Judith Portrait has 4.09% of company shares and Legal and
General Group Plc holding 3.99%. Sainsbury operates as a privately owned company and
objectives are to create profits. Sainsbury had increase in number of stores previous year and
have seen an increase of 17% in annual profits.
Sainsbury has a large number of levels of management consisting of 6 directors who are non-
executive, an independent senior director, a group commercial director, group development
director, chief executive, CFO and Board Chairman.
Definition of managers and leaders and their differences
Manager is the one who with the team has to get the work done and allots work accordingly to
get the work done on time.

Leader is the one who would see the work being accomplished from different perspective, leader
shows how the work has to be performed to achieve goals for a longer run for the organisation.
Differences between manager and leader
Manager is one who is an organisation’s representative being responsible for management of a
group of employees’ work and take actions requisitely as and when required.
The organisation’s structure formulation and delegation of the responsibilities and authorities is
done by the employees.
A leader is one directing, guiding and influencing behaviour of followers for specific goals
attainment. Direction is provided to employees by creating of vision and motivating them to
reach it in an innovative manner for the organisation.
Manager performs all the five functions of planning, organising, directing, staffing and
controlling. The manager has to get the work done of the employees.
Leader performs only the function of direction. The purpose of leader is to align the objectives of
employees with the organisation.
Analysis of role of management in different situations through application of different theories
Contemporary theory of management: Contemporary management theory is used to deal with
production cost that is high in current situation. Managers of organisation try in getting the costs
reduced by doing negotiation with suppliers. Leaders motivate employees for coping up with
suppliers who are new and maintaining the outcome of performance.
Management by objectives: The organisational objectives are achieved by employees and
managers with combined effort. Situation is in Sainsbury where targets have to be achieved in
festive or sale season. Managers can lead the team for completion of task in accordance with
relation to performance standard.
Classical management theory: It assists for improving organisation’s productivity. The theory is
given by Kaizen. The strategy does improvement continuously in the process of production. The
leadership style is participative followed by Sainsbury for decision-making and improvement in
production.

Behavioural theory of management: In the theory transformational leadership is followed.
Sainsbury applies this theory in their operation management and the abilities and skills of
employees are observed closely by the leaders. Effective leadership is followed for maintaining
the communication between employees and the leaders.
Contingency theory: The theory focus is on strategy with situational changes. Situation of
technology change has been dealt by Sainsbury in use of storage gas with collaboration with a
motor driving company. Organisation uses the theory for minimising risk and in the situation
leaders play an important role in helping employees cope up with changes of situation and
market condition.
Situational leadership: The strategy of leadership depends on abilities and skills of employees for
completion of job within time limit. Organisation use the leadership strategy for meeting
demands of different situation.
Systems leadership: It is applied by Sainsbury for controlling performance of employees and
communication in different situation. It has influence on workers for performing as per
organisational demand.
Examples:
 Change in the management structure of a company: It is a situation of a Sainsbury where
leaders and managers both involved that helps to meet the aim. In this, Sainsbury wants
to change the structure by adopting Hierarchical structure, in this managers delegate the
roles and responsibility to all employees, where leaders motivate employees to adjust into
new structure by applying situational leadership theory.
 Organizing the marketing campaign: Another situation, where quoted company wants to
promote the existing products in market and for that managers only provide overview to
leader and then it is a duty of leader to delegate role so that effective results can be
generated by attracting customers towards it.
Strengths and weaknesses and critical analysis of theories
Behavioural theory

Critical analysis: This theory justify the psychology impact of surroundings over a human
being. The surroundings can influence the skills of leadership and make somebody give reaction
according to own experience. Although, it can be observed that it may lead to a view personal of
the leader that may not suffice according to other subordinates as each have their own
understanding and experience according to human behaviour and there can come a difference in
opinions in decisions that shall require the leadership for taking an approach which is holistic
and finding the answer which is best as per situation. The organisational change comes with the
understanding taking place.
Transformational theory
Critical analysis: This theory’s approach is positive where leader want to see vision flow
between organisational employees. The leader requires a commitment which is of long term from
employees that may assist in their goals and also organisation. The approach sees development
and training sessions for employees that may give inspiration to them for having an approach for
own work as a manager and observe results themselves. The leader is true in employees cultivate
abilities of leadership to be own mentor. The only thing which may not work in theory’s favour
is the fact that not every employee will be able in understanding the leader’s vision as they may
not possess a long term commitment. Therefore, there is need for developing in the employees
in Sainsbury who are new an organisational feeling by making them know about the history and
the honours received by the organisation and the new tasks that the organisation would like to
take up in future that shall be beneficial for the society. Raising this feeling between employees
for the company may set a starting of vision cultivation with other qualities. This will lead to a
big change in the belief and thus impact a change which is big in organisation.
Situational theory
Critical analysis: This theory stands good for leader who can adapt to different situations and
can take role of being participative, directive, delegative etc. This may assist as per demand of
the situation. Although, the team of Sainsbury may get confused about the leader’s approaches
being changing. They may not have clue on approaching him given the leadership styles’ change.
The leader has to communicate with them for being their friend, an instructor or teacher