Operations Management Strategies and Techniques

This assignment delves into the realm of operations management, examining key strategies and techniques employed in modern business. It covers topics such as Lean production systems, Six Sigma quality improvement methodology, and situational leadership styles. The assignment analyzes these concepts, their applications in various industries, and their impact on organizational efficiency and effectiveness.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 : Comparison between leaders and managers...................................................................1
P2 : The role of a leader and function of a manager in different situational context.............3
P3 : Different theories and models of approaches..................................................................4
TASK 2............................................................................................................................................8
P4 : Key approaches to operation management and the role of leaders and managers of
Hyundai..................................................................................................................................8
P5 : The importance and value operations management plays in Hyundai in achieving
business objectives...............................................................................................................11
P6 : Factors within the business environment that impact upon operational management and
decision making....................................................................................................................11
CONCLUSION AND RECOMMENDATIONS..........................................................................12
REFERENCES .............................................................................................................................14

Illustration Index
Illustration 1: Situational leadership model.....................................................................................4
Illustration 2: Six-Sigma Model.......................................................................................................7
Illustration 3: Lean production system............................................................................................8

INTRODUCTION
Managing operations and functional activities within the business is a crucial and
complex task and it is essential to adopt a strategic approach to implementing the desired
operation. The manufacturing businesses are concerned with controlling and designing of the
production process and redesign their operations in order to increase production of goods and
services. The management and operations work as a combination which ensures that business
activities are well efficient in using the resources as per the need of meeting the requirements of
a customers. The present research is based on given case study of Wiseman Group. In this report,
different roles and characteristics of leaders and managers are compared. Along with this,
different leadership theories and models are also discussed.
TASK 1
P1 : Comparison between leaders and managers
The terms leader and Managers often used interchangeably, but they are fully different
from each other.
 Leader : According to the Gleanings, a leader is an individual who has the power and
ability to influence a group of people in order to accomplish organizational goals.
Leaders are those people who help themselves and others to do the right things. They
develop an inspiring vision, set direction and encourage to create something new
(Alderton and Saieva, 2013).
 Manager: Managers are described as a person who is in-charge of a certain group of
tasks. They fulfil the responsibility of managing their staff appropriately and adequately.
Different department designates their managers as per the requirement (Anderson and
et.al, 2015).
According to the case study Liz Wiseman, president of Wiseman group, emphasizes upon
her experiences about “Why great doers Don't make great leaders”. The case is considered as
advice to an individual who is appointed to a leadership position for the first time. The given
case is clearly defined some of the important characteristics which a leader must perform:
 Ability to delegate: A leader should know about the strengths and weaknesses of every
member of a team. This is the responsibility of a leader to utilize those strength, which
will allow everyone to grow and flourish with a team (Berenguer and et.al, 2015).
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 Communication: As per the case the president of Wiseman group is facing crisis
situation in the initial day of her job. She feels unable to complete her responsibility to
manage the work because the team is not doing their job appropriately. Here, a leader
should inculcate communication characteristics within them so that team can understand
their responsibility and leader can enable to complete their task.
 Developing skills: The skills which are required for being an effective leader are totally
different than those required for be a proficient doer. As doers are hands-on and do the
work people. They have responsibility for their individual output and job. A leader needs
to look for the coordinated work of all (Brandenburg and et.al, 2014). Here, as per the
case study leader should enable skills which enhance the level of team and time
management.
Difference between role of leaders and managers
Leaders Managers
Leaders possess visionary role by seeing a
possible and inspiring picture and engage
employees in the task to turn it into reality. For
example, in Wiseman Group leaders motivates
the involvement of employees and enhance
their level of productivity.
Managers focuses on measuring, setting and
achieving goals. They work for the vision
imagined by leaders (Bromiley and Rau,
2016).For example, Managers associated with
different departments set goals and use tools
and techniques to achieve them
The leaders have abilities to predict the
changes in advance and encourage team for go-
getter attitude. For instance, Wiseman Group is
using analytics, computing and more
aggressive algorithm which makes them
predictable and reduces the amount of
uncertainty.
Managers fulfil responsibilities by providing
instructions and acknowledge that everything
is going according to the plan (Brown, Bessant
and Lamming, 2013). For example, Managers
of Wiseman Group are looking after the
organizational plan and provide guidance
whenever it is needed
The most important role of leaders is
establishing integrity and honesty among the
employees so that they work hard towards
Managers roles is maintaining their respective
area and making sure that each operations is
performed on the set parameters. For instance,
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organizational goals. For example, Leaders of
Wiseman Group provide support to their
employee which makes them work at their best
level.
Finance manager handles manage and handle
the cash and ensure the prudent financial
condition of company.
P2 : The role of a leader and function of a manager in different situational context
The role of leader and and manager in different situation are described below
Team building: For the purpose of building a team managers delegate activities, tasks
and responsibilities to their team members. He is not much concern about developing
competencies and new skills within their team members. On the other hand, leaders are a focus
on inculcating potential competencies and new skills in their team mates, leaders inspire and
motivate them to learn new skills and implement it in their jobs (Burns, 2014). For example, the
leaders of Wiseman need to play a different type of role in building a strong team.
Decision making: At the time of uncertainty organization needs to take various tough
decisions, which could be favourable to someone and unfavourable to others. Here, leaders are
the active participants of the whole decision-making process. On the other hand, Managers take
participate is decision-making process because they think that it is their duty to perform. They
will not do these with personal interest or responsibility (Chevalier and et.al, 2015).
Approach towards risk: Uncertain situations create various risk situation for the
organization, then leader play their role in accepting that and try to overcome. They never avoid
and resist from risk even they take it as a challenge and put their efforts to complete it. Managers
in Wiseman Group are not able to take all the decision at the moment of risk encountered. They
resist and try to avoid risk situation due to imagining the negative results out of risk taking.
Problem solving: Problematic situations arises various time in front of Wiseman Group.
The response by leaders and managers is totally different towards solving problems. As an
example, High employee turnover is considered as the major problem for the company. In this
particular situation, a leader will try to solve the problem by using creative ideas regarding the
issue. Whereas managers will develop strategies and procedures for preparing effective policies
which reduce the turnover rate (Feng and et.al, 2014).
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P3 : Different theories and models of approaches
Following are the theories based on the fundamentals of organizational situations which
creates understanding about what are the different role of management and leadership in
Wiseman organisational structure:
Situational leadership theory
It is also named as Hershey and Blanchard's leadership style. It suggest that there is no
single leadership style which can be considered as best. It all depends on the situations which
organization is facing and which type of leadership strategy will be best suited in the specific
condition. This theory is considered as most effective because it enable leaders to adapt their
style on the situation which they are encountered with (Galindo and Batta, 2013). For instance if
employee are resisting or not able to perform their task in most effective manner than leaders
will be support them on every extent. Leaders behave in a different manner and managers have a
different behaviour towards it. For example: High labour turnover is a major problem in the firm.
In this situation a leader will try to simply see the problem and will try to find out creative ideas
for the issue. But under this situation, the manager will form strategies and procedures for
making good human resource policies so that the retention rates come to a lower rate. task
relevant and use different leadership styles as per the demand of situation (Heizer, 2016). For
instance, In Wiseman group leaders need to make their team management task more prudent, so
they need to change the way of working for accomplish their tasks on time. In a situation like,
employees are in a confusion before making decision and not fully satisfied with the work then
leader should response on it and involve in the particular activity.
Situational leadership theory suggests four different type of leadership styles, which are
as below:
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Illustration 1: Situational leadership model
(Source: Situational leadership style, 2016)
Telling (S1) : This leadership style involves the leader in telling people what to do and
how to do it. By enabling this they can guide and supervise their employees in an effective
manner (Hendricks, Hora and Singhal, 2014). For example at Wiseman Group if employee are
resisting and facing any problem regarding their work then leader guide and supervise them.
Selling (S2) : This leadership style increases the level of communication between leaders
and followers. The focus of selling leadership style is building high relationship, which make
the environment where leader will define task and roles but also ask for ideas and suggestion to
their team members (Karlsson, 2016).
Participating (S3) : This approach of leadership says that leaders offer minimum
guidance and direction to group members and allow them to take more active role and participate
in ideas generation and decision making process. For example, Leader of Wiseman Group
encourage the participation of their employee in organizational decision making process.
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Delegating (S4) : In this leadership style, leaders take participation in idea generation and
decision making process but most of the control is in group members hand. They tend to make
most of the decision and also take most of the responsibility of current situation (Malhotra and
et.al, 2014). For instance, if Wiseman Group encountered with any issue then employee will
decide the role of leaders in resolving it.
System leadership
System leadership approach defines the leadership across the organizational boundaries.
This approach is also considered as combination of transformational leadership style and
leadership of emergence. Transformational leadership style emphasis on communicating a vision
and building trust among employees. The system leadership involves the ability of leaders to see
the reality by the employees point of view (Mateo, 2016). For instance, Wiseman Group can
enable system leadership style by taking advice of employees about building organizational
relationships, networks and collaboration. This leadership style is effective only when employees
are highly skilled and well-versed.
Contingency leadership theory
This approach is similar to situational leadership style, it also believe that effective
leadership is not depend on one way. This style is adopted by the leaders at the time they are able
to understand every parameter of situation and in a position to make decision (Radnor and
Bateman, 2016). For example, in Wiseman Group employees are resisting and not able to work
effectively. As per the situation leaders need to respond and provide training and guidance
session for workers and try to understand their mind-set.
Chaos Theory
Chaos theory is considered as a scientific principals which describing the unpredictability
of systems. It is very useful for the organizations as it will allows Wiseman Group leaders and
managers to take a step back from the management of day to day activities and determine how
company works as unified systems. In order to reduce the chaotic quality of an organization
leaders need see the organization shape that emerges from distance. It will help in understanding
the pattern of organization and lead to certain type of behaviour within the firm.
Management by objectives
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Management by objectives (MBO) refers as a management tool with the goal of
improving performance of an organisation by defining the objectives with mutual consent of
management and employees. Several principal are set regarding the MBO :
 The objectives fixed the employees and are challenging but achievable
 Daily feedback procedures is being used and main focus is on rewards instead of
punishment
 Personal growth and development is on priority list rather than worrying about failing to
reach set objectives
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TASK 2
INTRODUCTION
Operation management consist with the administration of various business practises for
the purpose of creating the maximum level of efficiency possible for an organization. It also
define as transforming material and labour into goods and services with the goal of maximize
organizational profit. Hyundai is a hyper-aggressive car manufacturing company. They
emphasize on developing their operation on a real time basis so that they are able to eliminate the
problems instantly. The present study will discuss about the key approaches in operation
management and Hyundai's leaders role in implementing them.
P4 : Key approaches to operation management and the role of leaders and managers of Hyundai
As per the present case effective operation management practises are important for
maintaining competitive advantage, innovation, market sustainability and similarly various other
aspects. The approaches to operation management use by Hyundai are as below:
Six-Sigma : Organization’s primary motive behind involving Six-Sigma in their
operations is to improvize the quality of the output of a process by determining and eliminating
the reason of defects and minimizing variability in the business operations and processes.
Hyundai also included it in their business operations for better understanding. They installed Six
Sigma at their engineering centre for measure the level of improvement. It enable quality as a
cross functional responsibility as quality of the produced product should be maintain on each and
every level of organization (Roth and et.al, 2016). Apart from only operational activities
Hyundai implement six sigma in their finance, procurement, sales and marketing department
also.
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Illustration 2: Six-Sigma Model
(Source: Six-Sigma, 2016)
Lean production system : Lean production is an assembly line method which is
developed originally for auto-mobile manufacturing industry. It is also named as Just-in-time
production system. This particular production control system developed based on long years of
continuous improvement. The objective of Hyundai behind using lean production system is
manufacturing vehicles ordered by customers in quickest and efficient way for the purpose of
delivering the vehicles as soon as possible. This production system enhanced the productivity
improvement elements for the organization by making product on the basis of “What is needed,
When it is needed and in the amount needed” (Slack, 2015). Lean production indulge number of
efficiency concepts within such as :
 Continuous improvements
 Just-In-time production
 Time based management
 Total quality management
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Illustration 3: Lean production system
(Source : Lean production system . 2016)
Role of leaders and managers:
The success of Hyundai is directly indicating the strong hold and power of their managers
over operational activities of organization. The leaders and managers of Hyundai inculcate
delivering management system for making sure that customer and employee are fully satisfied
with their services. The leader of company are focused towards motivating and encouraging their
employees to increase the level of productivity. The younger chairman Chung directed that
Hyundai needs to focus upon quality rather than quantity, because of the character intensity of
chairman company went after quality improvement and mark success over the market.
Leaders and managers of Hyundai understand the importance of operation management
approaches (Six-Sigma, lean production) for their system. With the help of this, company
enlisted outside suppliers and bring them together with engineers and designers which resulted as
process and product improvement (Mateo, 2016). The chairman of Hyundai contributed on a
great extent in his company success by taking prudent investment decision and improving quality
of the products. The quality success of Hyundai is the outcome of focused management and
aggressive goals. Hyundai is considered as an ambitious company that is always looked for
boldness and leadership.
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P5 : The importance and value operations management plays in Hyundai in achieving business
objectives
Hyundai, one of the South Korea's biggest conglomerates showed extraordinary growth
since it was founded. The areas in which organisation marked their growth are car
manufacturing, electronic and finance related services. The growth pattern of Hyundai is directly
linked to the strategies and decisions which leaders took in operation management activities of
the organization. It is very well known fact that effective management of business operations
plays very essential role in overall growth of any organization. By inculcating operation
management, any business entity can ensure that all practices are performed at their highest level
of efficiency (Smith, Maull and CL Ng, 2014).
Hyundai is benefited by the use of operation management as it involves designing,
overseeing, controlling of their production process. Hyundai as a manufacturing company using
this approach for designing efficient processes, producing product, timely acquisition of raw
materials. For this purpose it need to make sure that all workers must be skilled and maintain all
plant and machinery properly . Adequate customer service is main goal of the company because
at the end of the day irrespective of all the strategy, if customers are not satisfied with the
product then the purpose of whole enterprise will vanish. Here, operations management make
sure that the needs and demands of the customers are fulfilled and simultaneously also ensure
that resources allocation process carried out in a systematic manner. (Venkat and et.al, 2015).
The respective case is also representing the fact that, the success and growth of Hyundai
is the result of shift in the focus of organization towards adopting quality centric approach.
Managers and leaders are effectively managing production and distribution activity within the
organization. By performing this functions they motivate employees to deliver quality service to
customers. After involving operation management into the system gaining various advantages
such as: Reduction in wastage, increase in productivity and proper management of time and
resources.
P6 : Factors within the business environment that impact upon operational management and
decision making
Hyundai is dedicated towards providing excellent quality of services, product and support
system. The approaches adopted by leaders and managers within the company are driven by
quality and also emphasizes, upon consistent improvement process all across the board.
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According to the give case, the biggest fear of Hyundai is uncertainty associated with the
demand for product which they are offering. The environment of the business, both internal as
well as external, has a great impact on operation management tactics and decision making
process of leaders and managers. The management of the organization are very strongly
concerned and conducting their business practises in ethical ways for developing long-term
relationship with their stakeholders such as: supplier, customer and employees (Alderton and
Saieva, 2013).
The operational activity of organisation get influenced because of diverse range of
internal and external environment factors. The sudden changes in internal and external factors
impacts on the environment of the business as well as overall community. Hyundai Understand
the importance of corporate social responsibility (CSR) activities. As, a car manufacturing
company they initiate several traffic safety campaigns, providing funding for educational
programs, investing in innovative leadership and so on (Brandenburg, Govindan and Seuring,
2014). Positive changes are brought into the community and company try their level best to
enhance the living standard of people. The rules and regulations directed by the government and
economic condition of countries also affect the business environment of the organization. The
technological advancement within the auto mobile industry affect the operational management of
company, leaders and managers due to desired function of business have to adopt new
technologies. The legal environment enforce the business entity to behave in an ethical manner
as the consequences of this can impact organization as well as community on a greater extent
(Bromiley and Rau, 2016).
CONCLUSION AND RECOMMENDATIONS
From the analysis of given cases it can be concluded that, leaders and managers both play
their significant role in managing the overall activities in respective organization. Situational
leadership theories and system leadership theories are beneficial for leaders as well as managers
in decision making process. The key approaches of operation management such as Six-Sigma
and lean production system are helpful in making production system and business process more
effective by reducing time and waste from the system. Factors such as legal, technological,
ethical are considered as effective for and have a huge impact on operational management and
decision making process.
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From the above study it is recommended that the leaders and managers of Wiseman
Group are required to change their way of controlling employees. Here, autocratic leadership
style will be effective for them. By using this they can implement their ideas and judgement in
proper manner. In the other case, the leaders of Hyundai are scared from the uncertain events
regarding product-demand factor. Company can reduces the level of uncertainty by using
analytical techniques into their system. Statistical models provide reliable data on which
company can develop their strategies.
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