Operations Management: H&M company

MANAGEMENT &
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 covered in PPT.......................................................................................................................3
M1 Analyse and differentiate role of a leader and manager by range of theories......................3
TASK 2............................................................................................................................................4
P2 Role of a leader and function of a manager in different situational contexts........................4
P3 Apply kinds of theories and models.......................................................................................5
M2 Assess the strength and weaknesses of various approaches in situations.............................6
D1 Critically analyse various theories and approaches of leadership in different contexts. ......7
TASK 3............................................................................................................................................7
P4 Elaborate key approaches of operation management that leaders and managers play..........1
P5 Explain the importance and value of operation management in achieving organisational
objectives.....................................................................................................................................2
M3. Leaders and managers can improve efficiencies of operational management ...................3
D2. Application of operations management and factors that impact on the wider business
environment.................................................................................................................................3
TASK 4............................................................................................................................................3
P6 Assess factors of within business environment impact on operational management. ..........3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management is an administration that apply best practice that helps in create
highest level of effectiveness and efficiency which possible for an organisation. Operation
management helps in converting raw material into finished goods and services to compensate
demand of consumers in effective manner. In it includes utilizing resources in better way that
are staff, materials and equipments to get efficient results out of production. This report is based
on the H&M company which is an Swedish multinational clothing retail organisation that known
for its fast clothing fashion for men, women and teenagers. It operates in 62 countries with 4500
stores in world wide that enlarge business opportunities in better way. This report is based on
Difference between role of a leader and function of a manager by using different theories. It also
elaborates their role and functions of manager and leader in different situational context with
applying various operational management principles for effectiveness in organisation. At last it
defines about relationship in leadership and management in contemporary business environment.
TASK 1
P1 covered in PPT.
M1 Analyse and differentiate role of a leader and manager by range of theories.
Leaders and managers are very much important for an organisation to determine and
coordinate each and every activity in organisational context. In various situations role of a leader
and manager differ from each other (Ambos and Håkanson, 2014.). Various situations arise in
organisation such as communication gap, change in leadership style and many more. While
dealing with various situations various kinds of leadership theories such as situational leadership,
contingency and many more that helps in resolve various issues in better way and give direction
to reach at desirable outcomes and goals in positive way.

TASK 2
P2 Role of a leader and function of a manager in different situational contexts.
Leaders and managers are very much important for an organisation to deal in effective
manner in various critical situations that arise in an organisation that are as follows:
Conflict resolution:
In an organisation various kinds of conflicts arise that hinders self interest, in that
situation Leader and managers of H&M plays crucial role. H&M is an multinational organisation
in which employees come from different backgrounds that create problem of cultural gaps in
them (Boyd and Dougherty, 2016.. ). It affects on their understanding level and they are not
able to gives their best in organisational development and enhancement in proper manner. In that
situation leader and manager of H&M, leader find out the root cause of problem and manager
investigate in various departments and after communicating with each other they reach at
decisive action. That kind of situation can be solved by giving proper teaching, training and
development to employees and many more. In that circumstance situational leadership style
should be applied that helps in behave differently in various situations.
Staff turnover:
The another one of issue that arise in an organisation that is staff turnover which is
majorly arise in organisation lack in proper communication, cultural diversity and lack of
motivation level (Ellitan, 2017.). In that situation leaders and managers plays very much crucial
role by evaluating major cause behind that problem. After evaluating that problem leader and
management directs their employees by giving proper training and development and find out
their level of motivation. After finding out their motivation level in H&M they provide fair
remuneration and wages with other facilitates that helps to enhance morale of employees. To
resolve that issues in proper way organisation applying various management and leadership
related works and practices with help of chaos management that helps in applying change in
organisation by various tools and techniques by facilitation and consultation to reach at desirable
goals and objectives.
Decreasing productivity:
The another major cause which hinders self interest of an organisation as well as an
individual that are decreasing productivity of employees. In that due to some reasons employees
feel unable to give their best. In that situation leaders and managers plays very vital role that

manager by taking information from their employees that what kind of problem they are facing
in organisation. Such as while H&M adopts new tools and techniques that sometimes create
problem to understand their functioning level in proper way (Fan, Liu and Zhang, 2015,).. In
that situation Leaders after evaluating skills and capabilities of employees planned training and
development plan so that problem should be resolved in proper way. In that situation
management by objectives should be applied and proved appropriate that helps in giving clear
goals and objectives to employees agreed after leaders and management.
So all these situations arise in any organisation and in that circumstance leaders and
management plays very much crucial role by evaluating their major cause and them apply
theories and practices to reach at desirable goals and objectives in proper way.
P3 Apply kinds of theories and models.
To coordinate each and every activity of an organisation, leaders and managers apply
various kinds of theories and practices that are very much crucial for organisation that are as
follows:
Situational leadership:
Situational leadership model is very much important for an organisation to take
appropriate action by applying right kind of strategy in an organisation. It is a timeless,
repeatable model or framework that use by leaders to connect or match by leaders as per the
performance require for an individual or group that influence their activities ( Eraki, 2015.). It
based on relationship between leaders and subordinate deals with that model to analyse various
circumstances that based on their performance in effective manner. In context of H&M which
with help of situational leadership style can be easily deal with various circumstances that arise
in organisation. It proved helpful in create a platform to sharing a common language and help
leaders to moderate behaviour in special circumstances. Situational leadership is flexible in
nature that helps to adapt according to situation as per working environment. It is not rely on
skills and capabilities of a leader but a leader can easily modify them as per requirement of an
organisation. So it proved very helpful in context of H&M to bring modifications in their work
and behaviour to remain always relevant in market.
System leadership:
System leadership one of the most important theory or practice that helps to leaders to
create environment and conditions in which all people at all levels can contribute in productive

manner by using their highest potential power (Eraqi, 2014.). It evaluates various principles that
includes human behaviour that helps in creating good leadership, strategies and design with
various processes. It brings tools and techniques to assume behaviour of leaders in an
organisation by developing effective system that brings productivity. In context of H&M by
using system leadership style they are able to predict human behaviour in very effective way so
that various kinds of crucial steps should be taken to reach at desirable goals and objectives. The
another way of understanding system leadership is to work beyond the organisational boundaries
to overcome from mutual concerns that can not by sought out by any person or institutions. That
system not focused solely on operating as an sole organisation but work in collaboration to go
beyond new boundaries (Fan, Liu and Zhang, 2015,). In that system approach operates of
various challenges on system that helps in focusing on future by applying various leadership
skills. So in context of H&M they to predict future projections in better way apply that practice
to remain always remain relevant as per the environment demands.
Contingency leadership:
The contingency theory of leadership states about effectiveness of leaders to contingent
for leadership style that matches with situation. As per theory leader have to evaluate best kind
of leadership style as per situation to eliminate problems in a very easy way. That theory majorly
concerned with that no style is best for leadership and situation called be effective when it
matches with situation to get effective results. That theory is based on that leader have to adopt
leadership style as the situation demands, the one of best way to deal with compatible situation
by making best use of resources in an effective manner.
M2 Assess the strength and weaknesses of various approaches in situations.
There are various approaches of leadership and management that helps in coordinate each
and every activity in an organisation to deal in various situations (Fisher, 2013.). In an
organisation when various kinds of theories and practices apply simultaneously then it create
various kinds of hazardous effects on organisation to deal in effective manner. Sometimes biased
results occurs in organisation while selecting best leadership style as per the situation that arise
in an organisation. On other hand in contingency leadership leaders found unable to select best
leadership style as per the situation that creates chaos in organisation.

D1 Critically analyse various theories and approaches of leadership in different contexts.
In an organisation various kinds of leadership and management practices plays major role
but sometimes they create hazardous effects on organisational goals and objectives in effective
manner ( Fleury and et.al., 2015.). While applying management and leadership approaches that
situational leadership skills hinders self interest of organisation because they not apply in every
situation. With contingency leadership style are best for organisation to match with as per
situation but as situation changes organisation not able to deal in effective manner.
TASK 3
P4 Elaborate key approaches of operation management that leaders and managers play.
Operations are considered as the performance of practical task. It transform resources into
expected products, services as deliver valuable to customers ( Eraki, 2015.).. Operational
approaches is mostly prefer to bring the management knowledge together which is related to its
functions. Various theories of operation management that are used by H&M are mentioned
below:
 Six Sigma: This particular approach is concentrate upon maximising the operation
management values by reducing the possibilities of errors. H&M can apply this theories
to minimise cost, eliminate defects possibilities that save their time and resources too. As
this is costly to adopt for performing the operations but if executed efficaciously then this
can minimise the non operating expenditure of respective firm by improving the
production quality. This is helpful for firm to develop goods manufacturing quality with
less defects at H&M.
 Lean production: This is also considered as the TPS which fundamental objective is to
minimise waste without compromising with productivity. It aids into minimising lead
times, improve quality and so on. Moreover, this is helpful to reduce wastage at the time
of production and save time. There are 7 kinds of wastes that can occur into company like
useless inventory, defects, over production etc. For obviate all wastage, strategy have
been developed to improve whole quality and production. Thus, H&M apply this
theories to eliminate wastage as well as enhance productivity which leads to maximise
sales.
Operation management approach:

Several approaches that are applied by H&M are mentioned below:
 Kaizen: This is refers as the significant operation management approach that is utilise for
developing continuous improvement. This is core to lean manufacturing and mostly used
into production sector for minimising the errors, eliminate wastage and maximise
productivity and so on. H&M leaders and manager apply this particular approach for
finding the issues, opportunities, creating solutions and rolling them out. Also, this
maximises the group work a well as develop team morale so that they perform effectually
for accomplishing their objectives.
 Just in time: It is an essential approach of operation management which are utilise by
H&M in its production process. They they intent to produce effectual goods as well as
accomplish their customers demands (Mezzadra and Neilson, 2013..). Moreover,
respective company ensures that all product are to be of standard quality as well as
simple for clients to buy that. Manager and leader of H&M use this particular approach
for reducing the inventory wastage, minimising transportation cost etc. so that production
cost can be minimised.
P5 Explain the importance and value of operation management in achieving organisational
objectives.
Both manager and leader plays significant role in maximising operational efficaciousness
for accomplishing the organisational objectives. They required to find out the present market lace
and also develop strategies in order to satisfy customers. So importance and value of operation
management are mentioned below: Transformation of raw material into finished goods: With the help of operational
management, raw material are transformed in finished products (Shi and Yu, 2013).
This is significant for optimal utilisation of resources which will leads towards
organisational profitability. With efforts of operation management, H&M can convert
their raw material into final goods. This is helpful to make the products on specified time
so that they can deliver their goods into market and attain its objective effectively. Control and distribution system: Operation management plays a essential role into
distribution and controlling system of the firm. This department management can control
as well as coordinate wide range of H&M activities for ensuring that company's objective
are accomplish accordingly. Channel of distribution is very essential department upon

operation management. This aids to accomplish goals as distribution and controlling
system coordinate wide range of operations whole that can be done effectually on
stipulated time.
 Process design: This shows that how activities will function. Operation management is
essential into products and process designing as this assure that H&M is capable to meet
their consumers requirements and demands. Process design is effectual the goods can be
formulated effectively that accomplish the customers needs to attain its objectives.
Value of operation management:
Some of the value of operation management are explained below: Ability to maximise productivity: The main aim of business is to increase productivity
with less cost. This is possible if there is efficacious team of operation management
within H&M to perform task. Therefore, if company's productivity as well as operations
are coordinated appropriately sop they can easily attain their objectives.
Better product and services quality: The clients prefer the good quality of products and services
it is only possible when H&M have efficacious operation management team for doing the
activities. With the aids of operation management, respective firm manager can evaluate overall
operations for effectual work performance (Veretnov, 2015. ). Thus, if team will perform
appropriately and level of performance will develop then that can accomplish their objectives.
M3. Leaders and managers can improve efficiencies of operational management
The leaders as well as manager plays effectual role in raising operational efficiencies for
accomplishing the business objectives. They required to find out present market and develop
plans to meet as well as satisfy the customers requirements. Moreover the operational
efficiencies can be improved for meeting the objectives through using the various management
approaches such as Kaizen, Just in time and so on.
D2. Application of operations management and factors that impact on the wider business
environment
Operation management is required into all firm for operating its business successfully.
The main aim of operation management is to perform whole activities of the H&M for
accomplishment of objectives (Waters and Rinsler, 2014.). It aids in reduction of wastage as
well as maintenance of product quality. The modification take place into dynamic surroundings

that can impact business into positive and negative manner. For overcoming with these their
manage have to develop effective strategies, policies and plans.
TASK 4
P6 Assess factors of within business environment impact on operational management.
For an organisation business environment is very much important to lead in market by
adopting various important measures that are corporate social responsibility, culture, values and
ethics with sustainability to remain always competitive in market (Han and et. al., 2017). All
these attributes give major contribution in creating value in front of various stakeholders to get
desirable outcomes in effective manner.
There are some close relationship in leadership and management in all these factors to implement
in context of organisation to get best results out of it. With help of leadership and management
an organisation can be able to take important decision in which area they have to contribute and
get loyalty of consumers so that effective results should be achieve. To conduct all these
activities in effective manner H&M management and leaders evaluate external environment to
evaluate major requirements in outer world that proved beneficial for both stakeholders and
organisation. There are some important attributes that impact on operational management that
are as follows:
Corporate social responsibility:
Corporate social responsibility is a kind of international private business kind self
regulation that helps to be socially accountable for stakeholders and masses. By contributing in
corporate social responsibility can get trust of consumers and stakeholders and also deal in all
aspects of environment (Idris, 2016). In context of H&M they by evaluating external
environment in proper way and then invest money in major areas so that effective results should
be achieve. The policy of H&M is to collaborate with major stakeholders such as government,
competitors, suppliers and distributors to give best results in effective manner.
Culture:
Culture is an social behaviour and norms that found in society of human. Culture should
be considered a concept of range of phenomenon that transmitted in society to get right
environment to work and live. It is one of most effective factor for employees in giving their best
within the organisation. In context of H&M they give flexible work environment in which every

one can contribute at maximum level. Culture is best factor to deliver right kind of value to
employees that helps to enhance their level of morale to achieve organisational goals and
objectives.
Value:
Values are the standards that helps in evaluation of actions, things and people. There are
some values that helps an individual to behave in best manner that are honesty, justice and peace
that are give identity to a person to create value before organisation (Ma and Sun, 2012). In
context of H&M they create some values that proved helpful for organisation as well as
individual to act in best manner in different situations to get competitive advantage. These values
acts as an identity of an individual as well as for organisation to reach at desirable outcomes.
Ethics:
Ethics is a branch of philosophy in which involves systematization of activities,
defending and get recommendation about what is right and wrong in different situations. In
context of H&M in which their employees follow some code of conduct that helps in behave in
rational manner to get desirable outcomes in best manner. With the help of ethical values
organisation can be able to maintain distinctive image in market.
Sustainability:
Sustainability is one of most important aspect for an organisation to deal in effective
manner. By contributing in CSR activities organisation can be able to give services in
marketplace and gain competitive advantage (Nayak, 2015.). Sustainability can be bring by
giving innovative products and services and after sales services. In context of H&M they always
focus on giving best products and services to consumers.
Relationship in various stakeholders to meet expectations:
There are close relationship in various stakeholders that they majorly work for
organisational development and self encouragement. By giving employment opportunities to
their stakeholders and serve to economy organisation can be develop entrepreneurship and
intrapreneurship to remain always competent in fierce competitive world.
So all these attributes are very much important for an organisation to take major decision
and building financial position in marketplace by grabbing large opportunities that available in
market that proved beneficial to get loyalty of consumers in effective manner.

CONCLUSION
from the above report it has been summarised that leadership and management are very
much crucial for an organisation to lead in market by effectively applying it. The role and
function of management and leader are very important in different situational contexts.
Operation management are very crucial to bring effectiveness in organisational goals and
objectives by applying various principles that helps in reducing wastage while producing goods
and services. For an organisation CSR activities, values and ethics plays crucial role to get
delighted experience to consumer base in positive way.

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