Operations Management Theories

Management and
Operations

Table of Contents
Management and Operations...........................................................................................................1
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Defining and comparing the different roles and characteristics of a leader and manager....3
P2. Role of leader and function of manager in different situational context..............................5
TASK 2............................................................................................................................................7
P3. Different theories and models of approach, including situational, system and contingency
leadership....................................................................................................................................7
TASK 3............................................................................................................................................8
P4 Key approaches to operations management and the role that managers and leaders play. ...8
P5 Importance and values of operations management in accomplishing business objectives .10
TASK 4..........................................................................................................................................11
P6. Factors within the business environment that impact upon operational management and
decision making by leaders and managers................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operations management is refer as the administration of business practices purpose at
ensuring maximum efficiency within an organisation, which in turn assist to improve
profitability (Management and operations. 2018). It involves different resources from materials,
staff, technology and equipments, converting these input into effective and efficient outputs on
both strategic and day-to-day activities within an enterprise. The organization which explains the
management operations is Amazon. It is a American e-commerce company having its
headquarter in Seattle, Washington. In this report, Role and functions of manager and leader
along with different situations are explained. Apart from that role of leaders and managers are
appreciated in the operational functions of an organization and relationship between leadership
and management are also explained.
TASK 1
P1. Defining and comparing the different roles and characteristics of a leader and manager
A leader is a person who leads and commands the group or organization so as to achieve
the goals and objectives of organization (Dickard, 2015). An effective leader is the person who is
capable of taking risky steps so that it can formulate the idea of achieving the gaols and
objectives of Amazon.
A manager is a person who is responsible in managing and controlling the staff so that it
can help them in achieving the goal and objectives of Amazon. A manager is a intermediate
between the the leader and employees.
Roles of leader
Communication:
This is an specific role of leader so that it can communicate with it's team members and
authorities effectively. The communication of a team leader should be effective in a manner that
it will help it's followers to understand the targets and achievements. In case of Amazon,
communication of leader should be better because it has to delivers the products as soon as
possible
Setting up of goals:

It is the primary role of a leader to set the goals and objectives of organization. The goals
and objectives are set by keeping in mind the functionality of company so that it will meet the
requirements of its customers in Amazon.
Functions of manager
Planning:
Planning is defined as the requirement to achieve the goals and objective of an
organization (Asef‐Vaziri, 2015). Planning is the primary function of a manager in which the
settlement of planning is done on the basis of goals and objectives of Amazon.
Controlling:
It is the process of managing the employees so that everything will be moving according
to the goal sand objectives of organization. If it is not happening than it is the responsibility of a
manger so that it helps the employee in moving the direction of achieving targets of Amazon.
Basis of comparison Leader Manager
Thinking The thinking of a leader is
innovative in nature which
help in setting up the goals of
Amazon. It means that leader
follows situational leadership.
The thinking of leader is
administrative in nature which
helps the company in
achieving the target set by the
leader. It follows classical
management theory (Francis,
2016).
Duration of thinking A leader thinks in the long
term perspective of the
Amazon. It follows
contingency theory.
While a manager is a short
term thinker to implement the
ideas of leader. It follows
classical theory.
Nature The nature of leader is unique
which always presents the
actual image of an Amazon. It
suggests that leaders are
transformational.
While the manager is
command oriented in nature
which follows the instructions
set by leader. It suggests that
managers follow contingency
theory of management.

Apart from the differences there are some similarities also in leader and manager. The basic
similarity of leader and manager is that both are accountable for achieving the goals of
organization and both also rely on effective communication.
Characteristics of leader
Sense of humour:
Since a leader is an innovative thinker therefore a good sense of humour is required with
the help of which, it will be able to set achievable and accurate goals of Amazon (Hasan, 2016).
If the leader does not have that good sense it will set the goals which will not meet the
requirements of customers.
Positive attitude:
A good positive attitude is required in a leader. This attitude help it in thinking all the
aspects of organization before setting up of goals and objectives. This will help the leader of
Amazon to fulfil the requirements of customers.
Characteristics of manager
Time management:
It is one of the important aspect of characteristics in a manager. The manager is
responsible in allocating the tasks to employees. It is responsibility of making things dine within
time. For this it has to manage the time allocated to it's followers.
Experience:
A manager should be well experienced enough so that there will be no issue to it in doing
it's work (Genovese and et. al., 2017). If the manager is inexperienced than it will make it to
work like a intruder which is not beneficial for the organization.
P2. Role of leader and function of manager in different situational context.
There are different situation in which role and function of leader and manager are
explained.
Fast changing situation:
The fast changing situation is a situation in which the needs of customers are changes
very fast. The best example of such situation is that customer can demand what is exactly
running in the market. Therefore Amazon has to deliver that facility to it's customers as soon as
possible. In the context of Amazon the fast changing need can be the delivery of product on it'[s

demanding day and date. This is the facility which has to be provided for its customers. In this
situation role and functions are as follows:
Role of leader
In this situation role of a leader is to prepare the draft for delivering the product as per
customer requirement that how it can be implemented and how much add-on charges can be
there.
Function of manager
In this situation manager has to implement the draft offered by the leader so that it can be
facilitate to the customer efficiently.
Moderate changing situation:
This is the situation which does not changes frequently but changes often. In this
situation Amazon has to change the technology of payment (Hill, 2017). The payment before is
done by debit or credit card or either by cash on delivery. In the changing ear of technology it
has to offer the customers to pay the amount later. This facility has some role and responsibilities
of leader and manager:
Role of leader:
In this situation role of a leader is that it has to formulate the data of reliable customers
which are engaged regularly within this e-commerce giant.
Function of manager
In this situation manager has the responsibility of effectively applying that condition of
selecting the customers so that this technological changes can be implemented easily.
Stable situation:
This is the situation in which condition does not changes, almost it stables thoroughly for
the years (Khanna, 2015). In case of Amazon stable changing situation can be the policies of
Amazon that it will deliver better for it's customers so that the bonding between the customers
and client will increase accordingly. The role and function of leader and manager is explained
according to the scenario.
Role of leader
The role of leader in this situation is that it can check whether the policies of Amazon are
working properly or not.
Function of manager

In this situation manager has the responsibility of checking the rights of each employee
so that If changes required in policies will be noticed in the mind of leader.
TASK 2
P3. Different theories and models of approach, including situational, system and contingency
leadership
Situational leadership theory:
According to this theory of leadership, a manager has to adopt a model or approach
according to the situation of the problem (Kumar, 2017). This theory does not have its specific
rules which can be implemented in the situation arises in Amazon. This approach is applied
according to the situation by which desired result can be achieved. In this theory, there are two
factors which are adopted by the manager according to the situation; directive behaviour and
supportive behaviour. When there is a requirement of direction than directive behaviour us used
and when support is required it uses supportive behaviour. This theory has it's strength and
weakness which are as follows:
Strength:
In this theory of leadership, a leader is capable of dealing with the situation which helps it
in solving the problem more effectively.
Weakness:
If the leader does not have experience about the situation it will take it into to a big
problem.
System leadership theory:
This theory is applied when there is a need of a change in the structure of organization
(Marshall and et. al., 2015). In this theory, a manger thinks beyond the boundaries of
organization and geo political boundaries so that the effective management can be applied in
Amazon. This theory is effective when leaders not only think about their own perspective but it
will look into a broader approach so that effective measures can be taken out of it. This theory
helps the company in thinking innovative and creative so that employees can be encouraged to
think different. The different strengths and weakness if this approach are listed below:
Strength:

This theory clarifies the issues so that a leader is capable of solving the issues with its
perception.
Weakness:
This theory has lengthy and complicated solutions for the issues.
Contingency leadership theory:
This theory suggests that decision taken depends upon the nature of the leader and there
is no such theory which best suits to Amazon to develop it's strategy. A right leader effectively
applied own perception of development rather than following the existing approaches. This
theory suggests two types of leaders one is task oriented and other is relationship oriented. The
task oriented leader focuses on just finishing the tasks without considering the aspects of others
to it. While the relationship oriented focuses on making the tasks done by its followers by
maintaining good relationships with others. This theory also has some strength and weakness:
Strength:
This theory widens the perception of a leader by applying its own thinking to solve a
problem.
Weakness:
This theory fails to explain why some leaders are good in specific problems but not in
others.
TASK 3
P4 Key approaches to operations management and the role that managers and leaders play.
Operations management is identify as an essential area of administration concerned with
controlling and designing the production process and redesigning business operations in the
manufacture of goods and services. There are different key approaches to operations
management of an enterprise which are determined as under:
Total quality management: It is refer as one of the best approach of operation
management and identified as the act of overseeing entire activities and tasks with purpose to
maintain a wanted level of excellence which covers developing and implementing quality
assurance and planning as well as quality enhancement (Siryani, 2015). Main motive of Amazon
towards applying this approach is improve performance and quality in entire functions. For

accomplishment of this, business leader and manager play vital role which are determined as
under:
Roles that plays by leader:
 To ensure proper utilisation and involvement of the every workforce. To set up measurement of performance for the processes.
Roles that plays by managers:
 To ensure UN-wavering emphasis on both external and internal customers. To see continues enhancement of the company and the production process.
Continuous improvement or Kaizen: It is identify as an effective and essential approach
which is followed by the business manager in order to enhance each and every functions of an
Amazon. Main purpose and motive of company by applying this approach is to reduce amount of
wastage in entire system via enhancing standardized process and activities. There are certain
roles that plays by managers and leaders are explained as under:
Role of a leaders:
 Support the workforce in any type of issue or problems and arrange for piece of work
delegation if required. Identify which employees will be in the group for the particular tasks.
Roles of manager:
 Analysis the scope and value of a task. Measuring the success and progress of the Kaizen team.
Six Sigma: It is identify as an effective methodology for enhancing the quality and performance
of operations management by saving cost, reducing cost and eliminating the defects and errors
(Mazzuchi and Sarkani, 2015). It is more essential and effective key approach to operation
management which is used by the manager of Amazon with motive to enhance production
process, improve return of sales, accomplish stock value and employment growth. For this,
leader and manager plays essential role which are determined as under:
Roles that plays by manager:
 Providing help and review to the workforce as well as the upper level administration. To control the implementation or development of six sigma approach of operation
management in the enterprise.
Roles that plays by leader

 To invest more amount of money in six sigma resources and training.
 To communicate importance and significance of six sigma to their entire employees.
P5 Importance and values of operations management in accomplishing business objectives
Operations management is identify as an administration function which involves the
designing, overseeing, controlling and monitoring business process in an effective and efficient
manner (Suri, 2016). There are different functions of operations management which will support
Amazon to achieve their long term goals and objectives within predetermined time period. Some
are determined as under:
Capacity management in operations: In this, business manager can set the capacity
management or administration with the support of three essential method such as incentive
blocking, strategic planning and incorporate problems in capacity management. This is the
benefit of Total quality management appraoch. Strategic: Manger of the Amazon, apply the strategic capacity management in order to
extenuate the throughputs for the IT related sources. This approach is needed to monitor
the process capacity to meet the future and present demands in business operations. Incentive blocking: The result from the activity of technical operations or transactions is
suppressed to close the additional production so that quality, management and inventory
cost can be monitored as per the demands.
 Incentive adjustment: It is another method which is applied by the business manager in
order to adjust operations and process in business services so that clients satisfaction can
be meet. It is needed optimum resources in order to adjust capacity management
systematically.
Therefore capacity management is beneficial for the organisation because it support them
to produce accurate capacity of goods for the clients as per the market demand. It also support in
eliminating the production cost for the additional products produced.
Logistic and inventory management: It is more essential and significant from the point
of view of an enterprise as without accurate logistics help the finished products can not be moved
to the marketplace. Thus is beneficial for the business's objectives of keeping an accurate supply
of goods in the market in order to address customer demands and needs (Swink and et. al., 2017).
The effectiveness and significance of inventory and logistics management process supports an
enterprise to produce the finished goods effectively in the accurate time by applying a

systematic activity and also supports in storing and utilizing the excess goods for future
application. Logistics and inventory management is the benefit of continuous improvement.
TASK 4
P6. Factors within the business environment that impact upon operational management and
decision making by leaders and managers.
There are various factors within the business environment which affect the decision
making and operational management of an organization. Therefore it is essential for the
organization to know the impact of these factors so that proper strategies can be made to
overcome these affects:
Corporate social responsibility:
It is the responsibility of any organization to make some funds out of its total revenue to
help the social boundaries in which business is operating (Wong, 2015). This is the rule of
government to donate a specific amount of money to the welfare of social development. It is also
the environmental factors of area where the business is operating its products and services. In
case of Amazon, the corporate social responsibility is that it has to deliver it's product with just a
single vehicle having a round of particular area. This saves the natural resource and also the
environment. This affects the operation management in such a manner that Amazon has to
change it's policy of delivering the goods and services. Amazon should also use a replacement of
poly thin which is also a part of environmental pollution. The decision should be made by the
Amazon to replace this pollutant.
Culture:
Culture is defined as the behaviour, customs of a particular place (Boon-Itt, 2015).
Culture affects the business in a direct manner in operations management and decision making.
In case of Amazon, the culture affects the decision making and operation management. In the
area where the company is operating it's business, they have to consider the culture of the local
public because they have to deliver them the product. They have to provide the list of items
which are relevant to the local customers, therefore affecting the business. Apart from that, in the
process of applying those products into the wish list of customers they have to change the
decision so that they can provide relevant product to their customers. This is an essential part of
the company to change and adopt the requirement of it's customers.

CONCLUSION
In this report, it can be concluded that operation management bis the crucial part of any business.
In the context of Amazon it also plays its importance because inventory management and other
cost reducing techniques to avail the product cheaper to its customers is the biggest challenge
faced by Amazon. In this report, role of leaders and managers are explained in the different
sections of organization such as in the given situation and operational function. Apart from that,
understanding of the relationship between leadership and management in a contemporary
business environment are also discussed in this report.

REFERENCES
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Macmillan International Higher Education.
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Online
Management and operations. 2018. [Online]. Available
through:<https://www.investopedia.com/terms/o/operations-management.asp>.