Operation Management Importance

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INTRODUCTION
The management is defined as process of conducting and supervising business activities.
Managing operations and business activities includes integrating operations for enhancing
efficiency and productivity. Managers and leaders both are important for performing business
operations. The main purpose of managers is guiding workers to focus on achieving overall
objectives of organisation. The company considered in this report is Corus. This is a part of Tata
Steel Group and this is the sixth largest producer of Steel. This is at second position in steel
production in Europe. The Corus Products Business is a business unit of Corus which provides
facilities in England, France and Scotland. This report describes about role and characteristics of
leaders & managers. Other concepts covered of this report are models & theories of leadership
approach. This report consists of role played by managers & leaders in various situations. There
is explanation of requirement and value of operation management in attainment of goals and
objectives. Also there is discussion about factors of business environment which impacts
operational management and process of decision making by leaders & managers.
TASK 1
P1 Define and compare the different roles and characteristics of a leader and a manager
Operational management is defined as the procedure of designing, controlling and
managing operations of business. Corus is a steel producing company and thus there are various
operations and tasks involved in functioning of this company. It is essential for this company to
have smooth functioning of business processes (Balasubramaniam, and et. al., 2016). Leader is
an individual who is responsible for affecting mind of other employees working in the company.
It is important for Corus leaders to work effectively and meet organisational goals and
objectives. Leaders must have qualities to control and manage subordinates.
Role of leaders
 The leaders of Corus have to maintain effective relationship among employees and they
must know how to manage conflicts and fights at workplace
 They have to understand explicate working culture and environment of the company and
provide effective trainings to workers of Corus
 Leader has the responsibility to develop good team and work effectively.

Characteristics of leaders
 Leaders have to manage all organisational situations and motivate workers to attain goals
and objectives
 Leaders of Corus have good communications skills so that they can effectively deliver
information and data within the company.
A manager is one who is handling functions of the company and managing employees.
The managers of Corus Steel are responsible for planning, controlling and organising different
functions of the company. In this case, productivity and efficiency is enhanced.
Role of Managers
 The managers of Corus have interpersonal skills that helps in interacting with clients and
employees.
 Information is collected by managers and distributed among workers so that efficiency of
employees can be improved.
Characteristics of managers
 The Corus managers are responsible for communicating plans and ideas to employees
within the company
 They must have effective thinking capability for finding solutions for different
organisational issues.
Comparison between Leader & Manager
Basis Leader Manager
Attributes
Leader of this company have
to create vision (Binz, and et.
al., 2013). They are
responsible for maintaining
integrity. The main focus of
leaders is on making effective
strategies.
The managers in Corus posses
different leadership qualities,
good communication and
knowledge so that there is
effective understanding of
ideas and plans.
Responsibilities
The main responsibility of a
leader is to create vision for
employees and workers. He is
Planning of strategies for
management operations,
assignment of role to

responsible for filling gap
between workers and
employers. The development
of team are major duties of
leader.
employees, ensure that raw
materials are used effectively
and efficiently.
Authorities
Leaders have to motivate
workers for increasing
productivity and efficiency of
employees.
Punishments and rewards are
given to employees depending
on performance.
Similarities between managers and leaders
 Both leaders and managers entail working with employees and it surrounds all staff
members.
 These are both functional as well as foundation of every organisation
 These are helpful in influencing work structure and environment
 Both leaders and managers have common goal of meeting organisational objectives
 Both are responsible for allocating available resources so that it can be used in more
effective manner.
There are various theories of leadership and management which are discussed below:
Transformational theory of leadership- This theory can be used by Corus in the situation
of changes in individuals and social system. It help in creating valuable and favourable change in
the followers with the ultimate objective of improving the followers in to leaders. It is helpful to
respective organisation for succession planning so that there is not lack of leadership qualities
and abilities in the company in future.
Action centred leadership- This theory define that good managers and leaders should
have an effective control of the the major areas of action centred leadership which are team,
tasks and individuals and they should also be able to use of the process in an appropriate manner.
In Corus, with the help of this theory, leader can attain results and objectives successfully, build
morals and make development in the quality of work.
Contingency Theory of leadership- This theory based on the situational approach which
is applied by the management of the company as per situation which I facing by the management

of the company at that time. In Corus, this theory of leadership can be used by the leader in a
variety of situations to maximize the productivity or make improvement in the coordination of
employees of different teams.
Trait theory of leadership-It is based on the traits and qualities of the leaders which lead
their effectiveness . In Corus, this theory is helpful to make enhancement in productivity and
increase profitability. It is beneficial to control the workforce of the company strictly.
TASK 2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational context
Leaders as well as managers of an organisation plays very necessary role in development
and achieving of overall goals and objectives of the company. In present context of Corus, it has
been identified that both manager and leader assist in accomplishing organisational goals and
objectives effectively and within stipulated time frame. They are the one who mainly help in
resolving any kind of issues and problems arise within the organisation. Along with this, they are
the one who mainly responsible for monitoring the performance of individual. It is basic role of a
manager to make strategies & plans for accomplishment of goals & objectives of company
(Fayol, 2016). But on the other hand, leaders are the one who implement all these strategies and
plans in an effective manner so that they can produce positive outcome which is beneficial for
the organisation. Apart from this, it has been determined that situational conditions refers to the
flexible and changing the working conditions whenever is required. It has also been said that it is
the method in which manager and leader adjust their business functions according to the
situational changes. Some of the main situations arise within the organisation where manager and
leader plays very important role are as follows:
 Job Dissatisfaction: It is the situation which mainly arise within an individual when they
are not satisfied with their working environment and surroundings. There are various
reason which might cause job dissatisfaction within an individual such as low salary,
poor working conditions, lack of growth opportunities and so on. In the context of Corus,
it has been identified that the role of a leader is to ensure that employees work their task
in order to attaining goals and objectives of company. It is the function of a manager to
provide effective working condition to their employees while performing their task.

Manager and leader of the company work together and support their employees so that
they can accomplish their pre defined task in an effective manner and within specific time
frame. Along with this, managers and leaders of the company resolve issues and conflicts
arise within the organisation so that employees feel satisfied and motivated enough.
 Conflicts: It is the situation which is very common within the organisation but highly
affects the performance of the company. In context of Corus, it is the role played by a
leader to provide conflict free environment to the staff member so that they can produce
positive outcome. In addition to this, it is the most basic function of a manager to resolve
issues and conflicts arise between all employees within time frame. Conflicts among staff
members reduce productivity and performance of staff members working within the
environment. It has been identified that managers of the Corus form different groups and
teams so that employees can perform their work together (Thaler, Priest, and Fuch,
2016). This as a result, create positive working environment within the company and
decrease changes of conflicts and issues. It is most function of manager to develop
strategies and role played by a leader to adopt and implement all the policies and
strategies within the company in an effective manner. These strategies includes
accommodating, then avoiding the issue and problem, collaborating with other staff
members and then compromising in front of problem. This as a result, reduce the chance
of conflicts arise within the organisation and increase positive relationship among
employees.
P3 Apply different theories and models of approach
Leadership is defined as the ability of a person to manage and control others. Leaders
have the ability to create vision and effectively share it with other employees. There are different
leadership styles adopted by leaders of Corus. These are mentionedbelow -
System theory of leadership - This is defined as the theory in which leaders act
according to different situations. There are different principles designed for analysing employees
through different tools. These help in developing models for strategies, designing system, social
processes and leadership models (Handschin, and Petroianu, 2012). The leaders of Corus are
responsible for building effective systems that enhances productivity of company.
Situational leadership -
There are various styles of a leadership being adopted by leaders. situational theory of leadership

is when leaders believe in adopting a particular style according to a situation and their team
members. This is a very flexible and dynamic type of structure in which both leader and its
subordinates get benefits. This is one of most effective type of situational leadership. Most
successful leaders adopt this style in their way of managing and leading their team. With the help
of theory, leader of Corus can formulate plans and polices as per the situation and provide
framed task and work to employees and team members so that they can effectively complete
them and accomplish their set objectives.
The different theories of leadership are trait theory and behavioural theories. These are
adopted by various managers and leaders of Corus for managing and controlling various
functions of the company.
Trait theory – The trait theory of leadership thinks that people are born and with some qualities
which makes them to excel in overall leadership roles and responsibilities. There are some
qualities like sense of responsibility and intelligence that makes man a successful leader.
Contingency theory – This theory states that there is no single leadership style. Leaders have to
adopt leadership style depending upon the situation. It is generally accepted within the
contingency theories that leader are more likely to express themselves when they feel that their
followers will be responsive. With the help of this theory, leader of Corus can work in order to
encourage employees to work in to different situations. For this, they will analyse employees
skills and competencies allotting work according to them. By considering this theory, mangers of
respective company can design work and task according to situation so that they can work
effectively according to the situation.
TASK 3
P4 Explain the key approaches to operation management and role of a leader and manager
Operations management denotes a process in which planning, organising
& controlling is done to increase overall productivity of company. Inputs are converted into final
products to provide value to customers. Companies always focuses on increasing quality of their
products so that there is increased satisfaction which leads to establishment of brand image of
company (Jacobs, Chase, and Lummus, 2014). Different approaches are used in business to

manage their overall operations and role played by managers and leaders in corus is discussed
below: Just-in-time: This is a system where strategy focuses on to enhance efficiency of overall
system, also reduce wastage of resources. In corus, it can also in reducing costs of
maintaining and storing inventory. In this approach, no excess production takes place,
production is done only when demand or need arises. This method demands accurate
forecast as this can help in increasing effectiveness of this system.
Role played by Leaders: In Corus leaders will use this approach to reduce overall cost of
company and reduction in cost will lead to increased profit of company. Leaders will try to make
employees understand importance of this approach in managing production of company.
Role played by Mangers: In Corus Mangers adopt this approach when they want to reduce their
overall cost. Managers try to provide sufficient return to shareholders of their company. Six sigma: It is a approach which companies commonly used to reduce errors and defects
which have a negative effect on whole production process. Managers in Corus use this
approach in which they focus on enhancing overall productivity in organisation. This
helps in achieving organisational objectives in a specified time period.
Role played by Leaders:Leaders in Corus will make sure that their employees are following this
model and there are zero defects in their work. They are making themselves experts and trying to
have zero defects in whatever work they are doing.
Role played by Mangers: Managers of Corus will manage overall working that there are
minimum defects and errors in process and also in final product. Total quality management: This approach mainly used where main objective is to
provide goods and services high in quality to customers. In Corus, TQM approach can be
used during the time when employees at all levels work to achieve highest quality in their
production.
Role played by Leaders: Leaders will encourage employees in Corus importance of maintaining
quality of products, this will help them in achieving their objective of providing high quality
product's in comparison to their competitors.
Role played by Mangers: Managers will supervise their subordinates that they are accomplishing
set quality standards of company.

 Lean production: Lean manufacturing is a system that focuses on overall manufacturing
system and also aims at maximizing productivity. It is based on Kaizen system which
focuses on continuous improvement. In Corus, it lays emphasis on reducing lead time,
improving quality and also focuses on reduction of operating cost (Jørgensen, and
Zaccour, 2012).
Role played by Leaders: Leaders have to assure that in corus there is continuous improvement in
overall production process, so that there are best quality products being manufactured.
Role played by Mangers: Managers in Corus must make efforts that Kaizen has been adopted in
overall production process.
Corus is a company dealing in steel manufacturing and it is part of famous TATA group
which makes it necessary for it adopt techniques of lean production, so that there is continuous
improvement in the overall production process.
P5 Explain the value and importance of operation management in order to attain objectives of
business
Operation management: Operations management is a method which is concerned with
designing and controlling the process of producing goods and services. It is method used by
Corus to perform or execute their work in more effective manner and produce positive outcome.
It has been identified that alternatives for each and every service is available at the marketplace
in order to protect the functionality of business from adverse and negative impact. Operation
management is very essential process in order to produce goods and services within specific time
frame (Kerzner, and Kerzner, 2017). Importance of Operation management is going to be
discussed as follows:
Reduce cost of the company: In the present context of Corus, it has been identified that
operation management plays very essential role with the help of which managers as well as
leaders reduce cost of the company in an effective way. Management team of the company
develop innovative methods in order to produce goods and services and then communicate with
leaders so that they can guide the staff members according to their plans and strategies. In order
to reduce cost of company, managers use Just in time approach. With the help of this, managers
order raw material whenever there is any requirement. This as a result assist them in order to
reduce inventory cost as well as overlapping of services. This approach assist management team
of the company in order to achieve goals and objectives of the company within stipulated time

frame. They provide training sessions to their employees on a regular basis so that they can
produce high quality goods and services within specific time frame. If just in time is used in the
company, then company is able to attain the goals of reducing the cost of company.
Enhancing overall productivity and profitability: One of the most important element for
a business is their productivity and profitability. In the present context of Corus, leaders and
managers of the company provide special consideration to overall production process and ensure
that they can perform their work in an effective manner and reduce scrap and wastage. Main
objective of operation management is to increase the productivity and profitability of the
company by using effective technology (López, and et. al., 2015). Along with this, managers and
leaders of company creating a positive working environment in order to motivate their staff
members and as a result produce best outcome. When Kaizen approach is used in the operational
management of Corus, overall productivity is enhanced.
Employee satisfaction: In reference to Corus, managers and leaders of company ensure
that there employees must be satisfied enough while working within the organisation.
Management team of the company provide a safe working environment to their employees so
that they feel secure while performing their work. In the context of Corus, it is a company who
manufacture steel products which becomes difficult for the workers while they execute their
work. It is a risky process where effective training is required while conducting their on filed
work, therefore it becomes essential to provide secure environment for working to the
employees.
TASK 4
P6 Assess the factors within the business environment that impact upon operational management
and decision making by leaders and managers
In a business environment, there are various factors that affects manager's and leader's
decision-making (McPherson, and Pincus, 2017). Internal and external factors are present in
external environment and these affect process and functions of the company. In context of Corus,
the impact of these factors are listed below -
Internal factors – This includes factors which are present in internal environment. These
directly affects functioning of the company. The internal factors affecting Corus are described
below -

Shareholders – There are some investments made in business entities for obtaining
profits and these are known as shareholders of the company. The leaders and managers of Corus
make different regulations, rules and policies for growth and development. These policies must
be effective so that they help in enhancing sustainability in marketplace. When this company will
make profits, this creates a positive mindset in front of other people. In this way, more
shareholders will be influenced for investing in this organisation. The managers have to make
effective decisions for increasing value of company in order to attract more shareholders.
Shareholders are very crucial for every company and they have to be properly managed y
company for smooth running of their operations and management.
Employees – It is very important for Corus that they have skilled employees in their
company. These are one of essential asset of every company. The managers of Corus are
responsible for recruiting right candidates who can attain goals & objectives of organisation in
efficiently. (Mendis, Muttaqi, and Perera, 2014). If the employees familiar of working condition
so they are in a better position to make their contribution in market. This will help them in
forming proper strategies which can contribute in management and operations of overall all
functions of company. Workers and employees of Corus are also skilled and they have
technological abilities for performing all operations of company in more effective manner.
External factors – These are the factors which are present in external environment the
business premises but they affect the business operations. The external factors affecting Corus
are mentioned below-
Technological factors – This includes technological advancements and up gradations that
occur in the techniques and processes used in the company. According to the current position of
market, there is drastic technology updates. Thus it is duty of managers to adopt new
technologies and implement them within the company. Decisions are made by leaders to know
which technological development to be used in the company. Technological development of
Corus are moderate. There is need of up gradation of technology as well as new techniques to be
implemented within Corus organisation. The leaders and managers of this company deals with
investments towards new technology while managing profit margins.
Suppliers – These are responsible for supplying raw materials and inputs that help in
producing the final finished products. The managers of Corus take care of different policies and
rules used by suppliers as these affect profit margins and sales of the company. Moreover, the

managers of Corus ensure that there are plenty of suppliers as if there are some changes in policy
of one supplier then then production system does not get affected. Corus has enough number of
suppliers, it is part of TATA group they have contact with large number of suppliers which help
them in management of overall company.
Culture- Culture is described as ideas and thoughts, customs and social behaviour of
individuals of a specific place. In Corus, it play an important role in operations management as at
the time of operation process the culture of the work force. It play an essential role in decision
making propcess of the company because decisions are made by the management of the firm for
a product keeping in view the cultural background.
Values- In the operations management, values are considered as crucial parameters to
finalise the standards of the production and also to set the working standards of the production.
In Corus, it is helpful to set the working standards of the company.
Ethics- In operation management, ethics described as the business which is operated by
following ethics and it aims to benefit all its stakeholders with the help of its actions and
activities. In Corus, it refers to make ensure that vision and mission of the company are modified
and redefined effectively.
Sustainability- It make concentration on to meet the demands of the current generation
without making and compromise the requirements of future generation. In corus, it is important
to promote itself as a responsible company to the general customers. So that, they can awre with
the firm which is beneficial to the business of the company.
CONCLUSION
From above report, it can be seen that there are various organisational structure which is
adopted and followed by the managers in order to enhance their effectiveness, efficiency and
productivity. From above stated report, it has been identified that leader and manager both play a
very important role in the overall development of organisation. Leaders are the one who provide
objectives and goals to the organisation as well as manager provide guidance to attain these
goals. With the help of this report, it has been identified that there are various kinds of roles a
leader and managers play. It includes controlling and monitoring the business operations along
with staff members of the company. Along with this, in the present report various approaches
and theories of leadership has been explained in detail which assist in performing operations of
business in more effective manner.

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