Redbridge HND Business: Leadership, Management, and Operations Report

This report examines the concepts of leadership and management within the context of Subway IP Inc., a prominent food industry company. It begins with an overview of the organization and defines the roles and characteristics of leaders and managers, comparing their approaches. The report then analyzes how leadership and management functions are applied in various situations within Subway, using examples to illustrate these applications. It further applies different leadership theories and models, including situational, systems, and contingency leadership, to specific scenarios within the organization. The report also explores the importance of operations management in achieving business objectives and assesses the factors within the business environment that influence operational management and decision-making by leaders and managers. The report concludes with a comprehensive analysis of the relationship between leadership, management, and operations in the context of Subway's business environment.

UNIT 4: MANAGEMENT AND OPERATIONS
STUDENT NAME: MIHAELA ALICE FRUNZETE
STUDENT ID: 14791
COURSE:REDBRIDGE -HND IN BUSINESS-
CAMPUS: WENTWORTH HOUSE GANTS HILL
SUBMISSION DEADLINE: 12 02 2017

Table of contents
Overview of the Organisation:.......................................................................................................................3
Task 1: Case problem.....................................................................................................................................4
a) Define and compare the different roles and characteristics of a leader and a manager.............................4
b) Examine with examples how the role of a leader and the function of a manager is applied in different
situations within your organisation................................................................................................................5
c) Apply theories and models of leadership approach including situational leadership , systems leadership
and contingency in specific situations within your organisation...................................................................6
Task 2 Case problem......................................................................................................................................7
b) Explain the importance and value of operations management in achieving business objectives........10
c) Assess the factors within the business environment that impact upon operational management and
decision making by leaders and managers...................................................................................................12
Conclusion...................................................................................................................................................15
Reference List:.............................................................................................................................................17
Appendices:..................................................................................................................................................19
Appendix 1:..................................................................................................................................................19
Appendix 2:..................................................................................................................................................20
Appendix 3:..................................................................................................................................................21
Appendix 4:..................................................................................................................................................22

Introduction:
The report deals with an understanding of how leadership and management create an impact upon the
performance of an organisation in an industry.
Operation management deals with the design, operation , and improvement of the systems that create
and deliver a firm ‘s primary products and services., being a functional field of business with clear
management responsibilities.
This report aims to evaluate the concept of leadership and management in context to a company in the
food industry, in this case, Subway IP Inc so it is mandatory to start with their definition.
Leadership is influencing others by your character , humility and example. Unlike management ,
leadership cannot be taught , although it may be learned and enhanced through coaching or mentoring.
Management is the organization and coordination of the activities of a business in order to achieve
defined objectives.
In this report, a comparison has been drawn between the roles of a leader and the manager in the
company, and their roles and functions in context to various situations arising in the company have been
thorough discussed. Further, their roles and functions have been critically analysed in context to the
organisation, followed by an understanding of their relationship in context to the present business
environment existing in the organisation.
Overview of the Organisation:
The Subway IP Inc. was founded by Dr. Peter Buck and Fred de Luca in the year 1965, in Connecticut,
the USA, under the name of Pete’s Super Submarines. Today it has 44,882 outlets in 112 countries itself.
The aim of the organisation is to be the fastest Quick Service Restaurant which provides fresh and
nutritious food for its customers. The objectives of the organisation are to continue evolving their menu
for providing their customers with tasty, nutritious meal while complying with the highest standard and
quality of food (Subway.com, 2017). The organisation also strives to find sustainable methods for the
supply of materials and usage of energy, while encouraging their franchisees to include organisational
diversity in business. Today the organisation is one of the first preferences of people, who prefer a fresh,
nutritious meal.

Figure 1: Logo of Subway IP Inc.
(Source: Subway.com, 2017)
Task 1: Case problem
a) Define and compare the different roles and characteristics of a leader and a manager
A leader and a manager are both seen as controlling figures in an organisation.
The leader can be defined as that individual working in the organisation, who directs the team of
employees in achieving a certain target allotted for the particular team. A leader keeps the team motivated
and empowered to achieve as much as they can, getting the best out of each individual for the benefit of
the team by being himself a dedicated part of the team.
Various theories like the trait theory and the behavioural theory of leadership have revealed that the
leader is people pleasing in origin, and has a charismatic personality, is authentic and knows how to
endure failure before raising up(Rae, 2017, p.76). According to the situational theory, a leader arises in
times of critical situations, gives examples, inspires people and deals with the problem as per the
situational context. He seeks new ways of working toward goals through that sparkle in his eyes and
through his personality that cannot be faked. It is due to this that, the leader has followers and the
manager has employees.
The contingency model of leadership further supports the situational theory of leadership by elucidating
that a leader takes creativedecisions in times of need, which make be risky for the organisation as a
whole. Thus, a leader has a transformational and action-based style of leadership (Carter et al. 2014,
p.691).
The manager, on the other hand, is the body of individuals that collects, collaborates and controls all the
resources required for achieving the organisational goals. As per the trait and behavioural theories of
management, the manager is more oriented towards the task allotted to the team members, and are seen
to comply more with the laws and policies followed by the organisation, in order to enable the company
to sustain in the food industry. Even though they have a charismatic personality, they are not risk-oriented
, focuses only on work and always conforms to standard.(Zietsmaet al. 2014, p.79). Rather, they are
averse to any sort of risks which may arise for the organisation as a whole. This fact, has been further
supported by the situational theory of management and the contingency model of management, which
further support the fact that on the rise of a chaos in the organisation, the manager, investigate the matter

to solve problems, and monitor the implemented strategy, in order to avoid any future chaos which may
risk the sustenance of the company in the industry(Zonaet al. 2013, p.299).
Leaders can be managers but not all the managers can be leaders.
b) Examine with examples how the role of a leader and the function of a manager is applied in
different situations within your organisation
The leader and the manager at restaurant outlets of the Subway IP Inc. are seen to implement various
styles and know-how gained by experience in various situations. The manager of subway utilises the trait,
behavioural and situational theories of management along with the contingency model of management, in
allotting individuals with various targets, to each and every team member, to look into their allotted tasks
(Beck and Cowan, 2014, p.5).Subway encourages all its managers to lead by example.
There are four imperative functions that unsure smooth operations of a business: planning , organizing,
leading and controlling.A manager at Subway must create and stick with a plan as planning is the
foundation for management. Once plans have been made and ready to be implemented organizing is the
next logical step that combines the resources available to the team. Once planning the motivation (or
leading) plays a significant part in influencing how inch organizational or departmental goal is to be
reached by building relationship through open communication. And in the end a manager must evaluate
the efforts of the organizational goal achievement.
The manager of Subway uses his four functions of business management on a daily basis: preparation of
monthly rota, organizing the staff to execute the plan, leading with clear instructions, motivating them to
work harder and controlling by making weekly a performance review.
In a situation like that of a mother, who is buying a meal for her six years old kid, asking for the best
option in the menu, the leader can direct the employees to advise the lady to opt for akids park, choosing
a sandwich as per the child’s preferences. The leader guides the team members, to advise properly, and
cut the vegetables, making sure they are fresh and not infected or have become rotten with time, as well
as are of the right texture. This the leader does so, with the application of the trait, behavioural and
situational theories of leadership, along with the contingency model of leadership, ensuring that the
customer receives the best quality service by the restaurant (Edwards et al. 2015, p.328).
However, should a team member fail to achieve the goal of the organisation, and serve a ham sandwich to
a lady of another religion, the manager is to punish the employee, and refund the money, or provide a

veggie sandwich without payment to the customer, ensuring the sustainability of the restaurant in the
industry. (Refer to Appendix 1).
Having seen the situation and how leader acts in that particular situation, role that manager would play
might be different. According to Mintzberg (1973), there are three various managerial roles which
includes interpersonal, decisional and informational roles. Interpersonal roles consist of figurehead, leader
and liaison.
As a figurehead of Subway the manager becomes a negotiator and a disturbance handler that is trying to
achieve an agreement with the lady that got the ham sandwich by proving a veggie sandwich without
payment, a monitor that it is staying alert with the changes and trying to keep the customer satisfied (they
shall further provide her with two options, where she shall first be provided with the option of a 4 inches
Veggie sandwich or a Turkey Sandwich without the need for payment for the same, in case the lady is not
too angry) because one unhappy customer leads to ten unhappy customers. The manager is also a
disseminator by influencing the attitude and the behaviour of the employees, he is transmitting the good
and the bad information about the issue for everyone to learn something from it, how to handle the
customer and spokesperson by using this situation as an example in the next meeting.
c) Apply theories and models of leadership approach including situational leadership , systems
leadership and contingency in specific situations within your organisation
Leadership: Leadership in an organization like Subway IP Inc. always gives a direction, sets some vision
and spreads the awareness of change and innovative ideas in an organization. They take strategic
decisions and channel the organization.
Situational leadership: Situational leadership means that leader is trying to incorporate within him the
changes that have come both in the institution and in his followers. He tries to become more and more
accommodative.
Systems leadership: In systems leadership model, the existing systems are well understood and as per
the organizational structure following the model the criteria of leadership are framed. The factors of an
organization or business are considered as a part of leadership.
Contingency leadership: In this, the leadership is judged as per the function of various contingencies.
Those are judged in the form of different task or groups and their variables. The leader and his
effectiveness is guided by the demands of the organization.
The leadership of Subway IP Inc. shall apply the behavioural and situational theories along with the
contingency model of leadership, in order to handle such a rise of a chaotic situation. In the case of a
mother buying a meal for her six year old child, where she has been provided a ham sandwich instead of a

Turkey of a Veggie Sandwich the leader shall take a transformational and action-based style of
leadership, by behaving politely with the mother and understanding her situation, to handle well,
preventing it from an arising in the future .They shall further provide her with two options, where she
shall first be provided with the option of a 4 inches Veggie sandwich or a Turkey Sandwich without the
need for payment for the same, in case the lady is not too angry. However, if she is, the leader shall try to
reason with thecustomer, failing upon which, the leader shall refund the money.
The manager, on the other hand, shall apply the transactional theory, to find out the source of the
problem, by taking the customer’s complaint seriously (Rae, 2017, p.76). They shall provide a warning to
the head andsous chef, along with the leader of another department for the avoidance of such a situation,
punishing the employee mainly responsible for the rise of the chaos. (Refer to Appendices 2, 3 and 4)
Task 2 Case problem
a) Explain the key approaches to operations management and the role that leaders and
managers play
Operation management is that aspect of a business industry which is involved in producing goods and
services in the most efficient and effective way and is very important in business operations since it
forms the heart of the organization by controlling the system of operation The key approaches to
operations management are : the queuing theory, lean production and six sigma
The queuing theory is the mathematical study of waiting lines that examines every component of
waiting line to be served including the arrival process, service process, number of servers , number of
system places and the number of customers .Real life applications include providing faster customer
service , improving traffic flow, shipping orders efficiently and designing telecommunications system
such as call centers.
The Lean Production is a systematic approach to identify and eliminate waste through continuous
improvement with the aim of zero defects and no reworking (working again on things that were done
wrong)
Six Sigma is a set of management techniques intended to improve business processes by greatly reducing
the probability that an error or defect will occur., a mechanism to find the defect , to find out where was
the problem that cause this defect.
Different operations management approaches: Total Quality management:

The advantages are:
(1) The needs of the extant market and its requirements are specifically highlighted.
(2) The quality of the performance and production increase.
The disadvantages are:
(1) It can reduce the industrial output at the initial level.
(2) The employees may resist the whole process at the initial level.
- Quality is everybody responsibility
-plan for quality
- strive for zero defects
- Quality means conformance to requirements that meet or exceed customers’ expectation
Just –in- time Inventory- This is a management system in which materials or products are produced or
acquired only as demand requires. This reduces the cost of raw materials and the cost of workforce. The
advantages are:
(1) It is very easy to stop one production or shift it to another.
(2) There is the least amount of inventory obsolescence.
The disadvantages are:
(1) If the supplier does not deliver products on time that can badly impact the whole production
process.
(2) During any natural calamity, the supply process would be halted and that will impact the
production too.
Concept of continuous improvement (kaizen) - It is a Japanese word meaning “continuous
improvement”. The advantages of this are:
(1) The organizational procedures and the production areas are more concentrated.
(2) This is good to have short time improvements.
The disadvantages are:
(1) The concept of interdependence among the employees may be lost.
(2) It requires a change in the whole business and thus perception building is very important.
Kai-change and zen- good
The concept is that small steps on a regular basis will lead to large improvements over time.

In order to establish an effective management to conduct operations in any business, it requires some
prerequisite functional roles to be performed on the part of the leader and manager of the organisation. It
is the fundamental responsibility of a proficient leader to construct an equally effective as well as efficient
business process by incorporating few essential strategies into practice. The foremost ingredient required
within any business leader is the capability to frame realistic operational programs (Harvey et al, 2016,
p.5). It is important for the organisational benefit to actualise the desired outcomes thus planned during
the framing of the operations management design. The manager of the organisation is given the authority
to recognise and give maximum value to the company’s workforce resource and treat them as the
company’s greatest assets. Encouraging collective and united performance along with accomplishment of
team goals is fostered and promoted by an efficient leader.
A visionary leader will always look for opportunities to make the most and the best results increasing the
efficacy quotient in conducting operations management. In order to run business in the most efficient
manner, the manager tries to reduce costs of products in per unit basis. At the same time, he will also
ensure that the product is available at lower sell price to hold on to their customers by providing them
with the best possible offer, keeping a margin of just higher than their cost amount to restore company's
agility. Incorporating this technique not only helps create profit opportunities for the firm, but also aids in
the longer sustenance of the organisation suiting the competitive climate of the market.
With the changing market scenario, it has come to practice that rather than focusing on cost effective
strategies, the leaders are instead seen to shift their vision more towards ensuring the quality standards of
their product-set. The managers are observed to choose suppliers with a little higher charge to be sure of
lower rejection rates instead of going for low charged suppliers. Greater emphasis is being paid to fulfil
customer expectations regarding holding high the quality standards.
A vigilant leader will always keep striving for better outcomes for their company by managing their
resources to produce the optimum level of standardised goods catering to the satisfaction of its customers
(Qin et al. 2016, p.730). One of the imperative steps taken by operations leaders is to generate and
implement supply chain measures to ensure greater productivity rates, lower the error rates, control the
risk and threat areas and deal skilfully with diversification and dynamism witnessed in the demand of the
customers.
The role of strong yet effective operations leader is primarily to lead instead of managing the functioning
of the organisation. The adequate functioning of the operations leader is to maintain balance by creating
the harmonious environment within the organisation, appraise a state of healthy and highly motivated
teams, encourage performance abilities, formulate and implement strategies achieve the desired result on
applying effective management tools.

b) Explain the importance and value of operations management in achieving business
objectives
Through the proper processing of the management operations in any organisation, it aims at
accomplishing the short term objectives thus designed by the company managers to achieve the long-term
goals of the organisation.
The term comes with a fundamental concept of fostering the administrative practices within any business
to obtain the greater level of organisational efficacy possible to include. It involves processes that aid in
transforming more materials into goods and products and labour thus put in into services by incorporating
effective and efficient management measures. It has been evident that the operation management
strategies differ on the basis of different purposes of the organisation.
On considering the present scenario, it focuses on operations managed within a food industry organisation
(Reddy et al. 2014, p.25). While concentrating on the operations management program thus conducted by
Subway, it can be observed that aspects of processing their food items with relevance to keeping up with
quality standards, timely delivery to its customers and bringing in modifications and innovations in their
menu variety to suit the changing tastes and demands of the consumers.
Production and capacity management: Production management means having the best production by
utilizing the available capacity of the storage, machinery, laborers and the equipments. It also considers
the production in terms of the least amount of time in hand. In implementation, one of the hindrances is
the capacity that is available and in working condition.
Scheduling: This means arrangement of the equipments and then a proper control of those equipments so
that the work and the workloads are fully utilized. The whole thing is undertaken in a manufacturing
process.
Process management: This includes features like making a perfect plan and then monitoring it while
implementing.
The managers and leaders can improve these features as the managers are the directors and they actually
direct and control the whole process and also knows about the existing capacity of the machinery. They
also schedule things in that manner. The leaders are basically the initiators or a new plan they make their
plans based on these tools and focus on the long-term goals.
Operations management conducted under the supervision of the managers and leaders comprise not only
designing, controlling, overseeing but also involves redesigning of operations management framework
with the passing time, to keep pace with the changing market climate.

Subway is seen to generate their promotional tag with the assurance of providing fresh products to their
consumers; hence it becomes necessary for them to maintain a continuous practice of obtaining fresh raw
materials for the purpose of serving their customers quality food instead of stocking the food materials for
future. Proper training of staffs constituting the organisation and supervision over the equipment thus
used for the processing purpose of ensuring quality grades of the company which plays a major role
within operations management scheme.
As operations management takes into account the regular role appraisal of the employees of the
organisation, the human resource of the particular firm becomes proficient enough to judge and
predetermine the changing needs of their consumers (Su et al. 2014, p.675). This helps them bring in
innovations and modifications in their tastes not just to meet the customer’s expectations but to also retain
their position high the competitive environment.
It is also evidently witnessed that due to the effective running of the operations management process, it
becomes easy for the organisations to conduct their recruitment programs smoothly. As operations also
include an extensive process of providing encouragement, motivation and boost the employee morale, a
reduced rate of employee turnover is evidently witnessed in companies having strong operations
management running within their structure.
A smooth functioning in the fields of accounts and finance department of the company aids in gaining
better support from the suppliers and materials (Das, 2015, p.59). Easy accessibility of payroll along with
predictable costs is fostered in such organisations. In order to take the company name high and reach it to
a zenith, it becomes imperative for the organisation to contribute to the operation management by
performing certain skilled roles. The leader of the organisation must possess the authoritative powers to
recognise the true skill of labour of the workforce and allocate them to the departments most suitable for
gaining best outputs from their valuable resources (Du et al. 2014, p.830).
For conducting effective operations for smooth and lucid management functioning, it is important for the
leaders to primarily create a feasible layout having a constructive plan specifying the ways and means of
attaining the expected results. One needs to be extremely visionary interims of being able to predict the
market scenario and take remedial precaution measures in a predetermined manner.
Operations managers are necessarily required to have a creative tilt to bring in innovative ideas and
incorporate them for the purpose of increasing the organisational efficacy (Lam et al, 2015, p.214).
In a MBO (Management by objectives) good goals are SMART goals to have success:
S –specific, M- Measurable, A- achievable, R- result orientated and T- time related
The operations management must be vigilant in looking after diverse aspects, striking a balanced,
cooperative and coordinated measure in creating a productive yet healthy atmosphere within the
organisation. It is desirable on the part of the management authority to be able to calculate the profit-

making strategies. Effective communication among all the stakeholders, whether to facilitate negotiation
aspects with the suppliers or dealing with unsatisfied consumers or to motivate and encourage the
workforce, acts as a strong tool accessed by the leaders to bring in success for the organisation at large.
c) Assess the factors within the business environment that impact upon operational
management and decision making by leaders and managers.
As the operations management process is solely dependent upon the administration, monitoring and
supervision of the leaders and manager of the organisation, hence their decision-making functions have
the most impact upon their execution process (Domke-Damonteet al. 2014, p.120).
Factors from diverse sources contribute in having an influence upon the operations management thus
taking place with respect to the present organisation under concern, Subway.
Internal factors: A proper analysis of the availability of capital on an annual basis concerning the
financial department aids the leader of Subway in making effective and efficient allocation and
distribution of capital to bring profits in terms of investments for the company.
Subway being a noteworthy brand among the food industry in the globalarena has its outlet all over the
world, thus fostering the easy accessibility and availability for the customers. Prompt and
effectivedeterminism of the market atmosphere and changing and bringing modifications in menu and
food items on the basis of instinctive judgment help them sustain for a long tenure in the market (Galindo
and Batta, 2013, p.210). Such can be the classification of strengths of the company in having the positive
impact upon the operational management of the decision making a process of the leaders.
The weakness thus identified on the part of the present organisation concerned are categorised as follows.
It can be seen that due to a diversification of the brand across all regions of the globe, the administrative
control seems to become fragmented at times. Managing all the stakeholders like the industry, the
consumers, the government, and the legal counsellors, establishing the alliance with its suppliers, more
than one manager authorised, and meeting customer satisfaction becomes difficult, thus negatively
influencing the company objectives.
Stakeholder theory looks at the relationships between an organization and others in its internal and
external environment. The core idea of stakeholder Freeman Theory is that organizations that manage
their stakeholder relationships effectively will survive longer and perform better than organizations that
don’t. Freeman suggests that organizations should develop certain stakeholder competencies: developing
strategies to effectively deal with stakeholders and their concerns, dividing and categorizing interests into
manageable segments, making a commitment to monitor stakeholders interests and ensuring that
organizational functions address the needs of stakeholders.