[SOLVED] Total Quality Management Process and PESTLE Analysis

The provided document is an answer to an assignment that requires detailing the key approach and importance of operation management in an organization. It also includes a PESTLE analysis of Starbucks and a description of the total quality management (TQM) process. The TQM process involves several steps, including planning, implementation, and control, which are essential for effective business operations. The PESTLE analysis is a framework used to analyze the external environment of an organization and identify opportunities and threats.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Comparison and definition of different characteristics and role of manager and leaders 1
Role of Leader and function of manger apply theory ............................................................2
TASK 2............................................................................................................................................2
2.1 Role of leader and function of manager in different situational.......................................2
2.2 Theories and models of approaches.................................................................................4
2.3 Key approaches to operations management.....................................................................6
2.4 Environmental factors that impact on decision making and operational management....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management (OM) can be defined as the system of converting finished
products from raw material. OM deals with the large number of operations that are related with
manufacturing and production of goods and services. Managing operation of the company may
helps in achieving the optimum output for a organization. This file is based on Operation
management study of Starbucks which is located in UK. OM basically includes various activities
such as Organizing, monitoring, planning, staffing, controlling and directing. The present report
is based on Starbucks corporation.Present report explain role of leader and manager functions in
organization. It also defines different models and theories in context of and situational, systems
and contingency leadership approach.
Furthermore, it will also help in understanding approaches to operations management and
role that managers and leaders play in such situation. Furthermore, study also describes value
and importance of OM in achieving business goals. In additional, assignment explains business
environment factors that impact on operation management and other functions of managers and
leader
MAIN BODY
TASK 1
Covered in PPT
TASK 2
2.1 Role of leader and function of manager in different situational
Starbucks is the biggest organization that runs its business effectively with the help of
their leaders and mangers. Leader role is to set direction and help employees to do right things in
workplace. They inspire workers and motivate to perform better in organization (Son, Kim and
Kim, 2014). Managers of Starbucks have to control various activities such as staffing,
controlling, organizing and planning in the organization in order to manage the business
performance effectively. Role of leader and manager functions has been described through using
different theories that apply in various conditions in the organization.
Starbucks leader adopt situational leadership theory style to give a proximate training and
coaching regarding new event contract within organization. They play their effective role by
provide direction to employees through training that help to perform their work effectively.
Regarding with the new contract workers need training for completing task on proper time
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frame. The entire process help worker to understand how to perform and conduct the new
contract within company. This will help leader in controlling employees and motivate towards
perform their effective work performance for succeeding the new event. The entire process of
training and coaching leader give proper information how to manage their work effectively that
increase business profit and growth. Thus, for completing the task leader motivate their
employees and inspire them that increase their interest of working. Coaching is the best way that
organize worker performances and set their activities on appropriate time frame.
Manager function base on system leadership theory
Starbucks manager have many functions in their job position that help for managing
entire business process and activities. They spend a good deal of time, leading, controlling and
organizing all over the functions effectively that generate more profit. Manager of the
organization take management decisions and make new plans or strategies that will be very
beneficial for Starbucks. The decision of managing or organizing the entire process of new event
contract is one of the major function of Starbucks manager. They have to achieve goal for
increasing productivity and production level within company. Thus, for that manager use system
leadership style in order to gain objectives and goals of business. Through manage employees'
performance in organization they operate each and every function effectively that increase profit
margin and raise more revenue.
2.2 Theories and models of approaches
 Situational leadership: Situational leadership is the best technique that deal with any
situation which have arisen in firm. By follow this style organization leader has to
manage according to different conditions that will develop during coaching and training
activity.
For example, if the situation occurs in front of Team leader to resolve the conflict between two
members, then leader may have to act smartly by taking fair decisions. In this situation role of
the leader is to understand the main matter of conflict between them and motivate them to forget
the conflict and encourage them to communicate with each other.
In this situation manager's function is to take the fair and unbiased decision regarding the
conflict.
 Systems leadership: This style enables the managers to make the appropriate decesions
of the situations so the workers at every levels of management work productively to their
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ability. For example, At the time of changing technology of the company, employees
resist such changes and cannot be able to sustain for longer.
◦ Role of the leader is to motivate them to adopt the learning regarding new
technology. On the other hand, function of the manager is to encourage their learning
by promoting training and personal development compaigns.
 Contingency leadership: Contingency leadership style emphasizes effectiveness of
leadership that dependent on coordinating leader’s style to correct situation. It is
organizational theory which claims that there is no better way to manage a corporation,
make decisions, lead organization. In additional, the optimum course of act is dependent
on the base of external and internal condition. Starbucks leaders adopt this style for
making their business more successful.
◦ For example, at the time of more demands of the customer, employees are forced to
work for longer time and produce the goods and services.
◦ In this situation role of the leader is to encourage their team to produce a efficient
productivity by helping them out in adopting new methods for operations while
function of the manager is to motivate them by providing incentives and extra pay.
 Chaos theory: Chaos theory is based on scientific principle that explains the
unpredictable changes in system such as eco system, water flows and weather patterns
that impact on organizations business procedures. Starbucks manager need to adopt this
theory for making flexibility in their work that help them to set in any changes or
environment of workplace. Through using this theory they manage their work and also to
their employees that help to achieve goals and objectives. By applying this theory within
their work they succeed in every levels of management that increase business profitability
and productivity.
 Management objectives: Management objectives is the best approach that define
specific goals and objectives within organization that manager need to achieve and
convey to their employees that help to make any decision about achieving each objective
in proper way. The entire process allow Starbucks manager to take action that want to be
complete one step at time to permit for a clam, thus for productive work environment.
This activity also help workers to see their acquirement that they achieve each goals
which strengthen positive work atmosphere and sense of accomplishment.
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Situational leadership
This can be defined as the practice that governs the style of leading the team in every situation of
the business. This approach mainly helps in depicting the leaders style of managing the team and
thus the role of leaders may inspires the team members in taking the situational decisions.
Different situational decisions may helps the leader in carrying out the effective and efficient
performance of the team.
Strength: Starbucks leader adopt situational leadership that support them for working
together in communicative and collaborative manner that make them superior to any individual
of them working of their own. This leadership is easy to understand and simple for leaders to
change their management.
Weakness: Leader of Starbucks use this leadership that create confusion to management
condition that result will be visible behavioral incompatibility on part of the superior.
System leadership
System leadership help organization manager to create situations where every people at
each level work effectively and productively according to potential. It uses sound rule and values
about human behavior to make models of leadership, systems design, organizational plan and
strategy and business process. It is the primary function and strong factor of transformational
manager who rates high as innovative and proactive manager (Lorinkova, and Perry, 2017). This
style is needed in complex situation or environment in which employees and organization have
different requirements and objectives is never to make the right things. System leadership
implies a more collective enactment form individual in multiple companies and variety of levels.
Strength: System leadership helps in increasing the Starbucks manager morale that helps
in maximizing their business profit and also for achieving goals and objectives of organization.
Weakness: By adopting this style in their work manager of the organization take long
time in making any decision.
Contingency leadership
This leadership theory can be defined as the style of leadership which can be applied at
the different situations. Manager identifies various roles and assure that they assign accurate
amount of workers to carry out their plan. This style help them in directing and controlling their
team of program that work toward higher income numbers without any barriers in way of event
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preparation. Planning is highly based on division goals, departmental goal, team aim and
organizational objectives.
Strength: It makes leader more flexible in their work that helps them in adjusting in any
business environment in Starbucks.
Weakness: Contingency leadership is reactive style that makes things unmanageable for
leaders of Starbucks. This leadership is proactive and complex in nature.
2.3 Key approaches to operations management
Total Quality Management (TQM)
RQM mainly helps in improving the quality and performance of operations in delivering
throughput. Application of this approach helps the leaders in achieving their goals by managing
the effective quality of output.
Managers also use total quality management approach in their management function in
order to meet the quality standards of the production. This enhance clients expectation more
than now that also impact on business growth effectively. They achieved all quality and related
processes or functions throughout the Starbucks organization.
Thus, by follow this approach manager manage quality development and design, control quality
and maintenance, improve service delivery and assurance quality.
Just in Time inventory
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Illustration 1: Key elements of Total quality management

Time inventory is a strategy to maximize efficiency and minimize waste by receiving
products if they are needed in production procedure, thereby reducing inventory prices. This is
the best approach that low down inventory holding prices, improved cash flow, less dead stock
etc. This process increase their efficiency and performance effectively that directly influence on
organization business growth and success.
Manager role in the approach of operations management help them for making those
plans that decrease waste by having goods on customers demands. Thus, by making decision
according to the clients needs they improve cash flow which is not required to store in large
amount of products all the times that reduce assets expenditure and there cost will be endowed
somewhere else in business.
Improving efficiency of operational management
This approaches helps the leaders and managers to improve their efficiencies of
operational management. As this includes various function which helps in successfully
achieving business goals and meet with their objectives in Starbucks. By implementing new
management tools leaders improved workers efficiency, time management, reduces staff stress
and raise the quality of meetings (Wu and Parker, 2017). Group leaders of organization boost
higher levels of productivity form every team member, encourage overall skillfulness of their
employees and company's business operations. Thus, all the process make them successful and
power to meet with Starbucks aims and objectives.
Operation management is coordinating functions with regarding to company for
achieving their specific aims and goals. Thus managers and mleaders promote the healthy and
better working conditions for their employeees which helps them in increasing the operational
efficiency of the company.
Importance of operations management
It is very important for Starbucks that to manage their daily activities and functions of
business seamlessly. It also helps employees of the company improve their ability to make
quality products by using good resources like goods material etc. operation management is very
essential to develop and improved overall business productivity. This will help company for
creating the highest level standards that maximize financial budget and profit of Starbucks. The
entire process will achieve business goals and objectives such as developing business more than
other competitors, build reputation, improve brand image in marketplace.
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2.4 Environmental factors that impact on decision making and operational management
 Political factors: Political factors are general environment refers to government law of
business and entire legal and political condition of UK. It set boundary for Starbucks
what do's and doesn't that impact on their business and decision making function of their
manager. Political factor is affect the entire business operations and functions because
there are various type of pressure generated in the organization such as corruption,
funding, initiative and wars that's why, it is needed for business process to handle all the
factors in proper manner. Political impact on the decision making where the employee
cannot able to take decision regarding their own development.
(Source: PESTLE Analysis of Starbucks. 2015)
 Economic factors: The Economic factors is basically related to the economic policies,
structure that impact on the overall business process. It involves local economy,
international trade, interest, import or export ratios, taxation and economy trends etc.
Thus, all the economic factors affect the needs for products and services that higher costs
and raise commodity costs. Economic factor impact on the decision making when
employee uses this concept to manage the product services in marketplace. In this way, it
will increase the productivity and profitability.
 Social factors: Different cultural factors like beliefs, standards of living, attitudes have
large role within business market of Starbucks. It indicates services, products and
modular of production that society is likely to appreciate and value. These elements
impact on operational management and decision making function of organization. Social
factor impact on the decision making where it can be changed the opinion of people
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Ill
ustration 2: PESTEL Analysis

towards the organization. Communities and societies used the business aspects to choose
the right option on the basis of requirement.
 Technological factors: Technology is developing day by day which track to the fastest
success of Starbucks in different way. Technology factor impact on operational
management and decision making activity of organization. Managers and leaders has
change their function according to new technology and investment decision that accurate
in technologies which they need to adopted. This factor will help for people to take
decision because technology will help for implementing new concept to increase the
productivity and profitability in marketplace.
 Environmental Factor: Starbucks use paper cup for coffee which is not recycled, so that
it is hazardous for environment. Thus, it directs effect on decision making regarding
utilization of coffee cups and managing operation of company. Now, firm has discovered
the solution for this issue, they are utilising perishable material rather than plastic that can
be easily recycled. Firm utilise fuel efficient machines that will decrease natural gas
consumption in many of the store. This factor will help for people to use the best quality
of product and services which based on the environmental friendly.
 Legal Factor: Company face different legal factors which involve health and safety
thinking, fluctuation in trade law, value of consumer laws, environmental policy and
regulation that are effected on decisions making regarding healthy material used to make
coffee to consumer. As global warming, Starbucks use perishable material which can be
easily recycled for managing operation of business appropriately. Legal factor impact on
the decision making where the employee has equal right to take own decision regarding
their job and business opportunities.
CONCLUSION
As per discussion, it concluded that operation management is the beneficial for
organization to perform different task according to the need and requirement. This is also
discussed about the different role of leader and manager on the basis of situational leadership. It
summarized the different theories and approaches that applicable in the organization to manage
their business operations in effective manner. Furthermore, It describes the key approach and
important of operation management in the organization.
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REFERENCES
Book and Journals
Bahmani-Firouzi, B. and Azizipanah-Abarghooee, R., 2014. Optimal sizing of battery energy
storage for micro-grid operation management using a new improved bat
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Caniani, D. and et.al., 2015. Towards a new decision support system for design, management
and operation of wastewater treatment plants for the reduction of greenhouse gases
emission. Water. 7(10). pp.5599-5616.
Lorinkova, N. M. and Perry, S. J., 2017. When is empowerment effective? The role of leader-
leader exchange in empowering leadership, cynicism, and time theft. Journal of
Management. 43(5). pp.1631-1654.
Mohammadi, S., Soleymani, S. and Mozafari, B., 2014. Scenario-based stochastic operation
management of microgrid including wind, photovoltaic, micro-turbine, fuel cell and
energy storage devices. International Journal of Electrical Power & Energy
Systems. 54. pp.525-535.
Qu, R., Janssen, O. and Shi, K., 2015. Transformational leadership and follower creativity: The
mediating role of follower relational identification and the moderating role of leader
creativity expectations. The Leadership Quarterly. 26(2). pp.286-299.
Son, S., Kim, D. Y. and Kim, M., 2014. How perceived interpersonal justice relates to job
burnout and intention to leave: The role of leader–member exchange and cognition‐
based trust in leaders. Asian Journal of Social Psychology. 17(1). pp.12-24.
Sosik, J. J., Chun, J. U. and Zhu, W., 2014. Hang on to your ego: The moderating role of leader
narcissism on relationships between leader charisma and follower psychological
empowerment and moral identity. Journal of Business Ethics. 120(1). pp.65-80.
Strande, L. and Brdjanovic, D. eds., 2014. Faecal sludge management: Systems approach for
implementation and operation. IWA publishing.
Wu, C. H. and Parker, S. K., 2017. The role of leader support in facilitating proactive work
behavior: A perspective from attachment theory. Journal of Management. 43(4).
pp.1025-1049.
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Online
PESTLE Analysis of Starbucks. 2015.[ONLINE].Available
through:<https://pestleanalysis.com/pestle-analysis-of-starbucks>
The Total Quality Management Process. 2018. [ONLINE].Available
through:<https://www.business-online-learning.com/total-quality-management-
process.html>
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