Operations Management: Functions and Impact

This assignment delves into the core functions of operations management, examining their roles in achieving organizational goals. It analyzes how planning, organizing, staffing, leading, and controlling contribute to efficient production processes, resource allocation, quality control, and overall operational effectiveness. The influence of operations management on a company's success is also discussed, considering its impact on factors like productivity, customer satisfaction, and sustainability.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Definition and comparison of different roles and characteristics of a leader and a manager 1
M1 Analysis and differentiation between the role of a leader and function of a manager using
range of theories and concepts in M& S Ltd...............................................................................2
P2 Application of role of a leader and the functions of a manager in different situations..........3
P3 Application of different leadership theories and approach....................................................4
M2 Strengths and weaknesses of different approaches to situations within the work
environment.................................................................................................................................4
D1 Critical analysis and evaluation of different leadership theories and approaches.................5
TASK 2............................................................................................................................................6
P4 Key approaches to operations management and role of leaders and managers.....................6
P5 Importance and value of operation management in achieving business objectives...............7
M3 Ways to improve efficiencies of operational management to meet business objectives......7
P6 Impact of factors within the business environment on operational management and
decision making by leaders and managers..................................................................................8
M4 Analysis of different factors affecting the business environment and wider community....8
D2 Critical evaluation of application of operations management and factors having impact on
wider business environment .......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The operations management is considered as one of the main and important functions in
an organisation. This includes the process of designing, implementing and controlling the
operations to create desired products and services with the resources available to the firm. This is
done in accordance with the implementation of the business strategies in order to create
maximum level of efficiency and production for growth and expansion of the company (Bozarth
and Handfield, 2016). This process mainly focus on increasing the profits and revenue of the
company by using indirect methods. This process needs involvement of the leaders and managers
of the organisation in order to attain the company objectives. As the management consultant for
the growing company M & S Ltd., a report on the roles of leaders and managers on the
operations needs to be presented. This also involves the approaches related to the operations
management in the mentioned company to improve the production and efficiency of the
company to make it a successful business firm in the future.
TASK 1
P1 Definition and comparison of different roles and characteristics of a leader and a manager
Leader is a person holding superior position in his field and is able to control and
influence over others in the organisation. The person other people lookup for guidance and
inspiration (Talk, 2016). Whereas, a manager is a person who controls a particular activity or
task in the organisation. They are made in charge of the fields depending upon the function of the
department.
Basis of comparison Roles and characteristics of
leader
Roles and characteristics of
manager
Roles Leaders create a vision for the
people while inspiring them to
achieve them.
Managers are given a pre decided
set of goals which they are
responsible to achieve with the
help of his subordinates.
Personalities Leaders are called brilliant and
charismatic many times as they
thrive on taking risks and having a
high level of imagination (Alderton
Managers are usually seen as
under control as problem solvers
in the organisation, with the focus
on achieving the goals while
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and Saieva, 2013). following the rules.
Approaches Leaders are thinkers which enables
them to have a bigger vision and
strive to achieve that in the long
term.
Managers are mainly focused on
the short term goals which are
allocated by the superiors. They
don't have their own vision.
Priorities Leaders are focused on the people
such as stakeholders to build
loyalty and trust among them for
achieving their vision.
Managers and focused on the
organisational structures required
to achieve the set goals working
with the people (Ergun and et.al,
2010).
Working style Leaders are mainly known for
creating changes and helping in
adapting them.
Managers are mainly known for
working in the fixed environment.
They are work towards making
the established working system
more efficient.
M1 Analysis and differentiation between the role of a leader and function of a manager using
range of theories and concepts in M& S Ltd.
The different theories that can be used in M& S Ltd. to differentiate between the role of a
leader and function of a manager are:
Roles of leader by applying theories Functions of managers by applying theories
Trait Theory: The trait theory of leadership
involves identifying characteristics of
personalities for successful and unsuccessful
leadership as well. It is based on the assumption
that the leaders are born and not made (Slack,
Chambers and Johnston, 2010). This list of
traits is compared to that of potential leader in
the organisation to predict the future success
and failure. Leaders in M& S Ltd. have some
Human Relation Theory: This theory is based
on the belief that people in an organisation
wants to be a part of supportive team which
helps in development and growth. More
significance given to a work more it is
presumed to be of high value which
encourages people to perform better and
improve quality of work. Managers of M& S
Ltd. are required to apply this approach in
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traits similar to that of successful and effective
leaders.
order to encourage the employees to perform
better.
Behavioural Theory:The behavioural theory of
leadership focuses on specific behaviours of a
leader as it provides best insight of his
influences and success. The leader uses these
skills to lead such as technical, human and
conceptual. The mentioned company needs to
identify these skills in its leaders to predict the
success and failure of the person as a leader.
Chaos Theory: The theory of chaos in
management explains that fact that every event
has a reason behind it which can be controlled
at times. It refers to the system dynamics of
having nil or minimum order which shows that
a small change for now can create a complex
change in future. This theory can be applied in
the mentioned company in order to understand
the complex concept of different systems.
P2 Application of role of a leader and the functions of a manager in different situations
In an organisation leaders play many roles in leading and encouraging the employees to achieve
the objective of the organisation whereas, managers plays different roles in order to help the staff
to work towards the goals. Both part of the organisation are equally important as per the roles
they play (Baldwin, Allen and Ridgway, 2010).
Decision making- The process of decision making needs leaders and managers both as it
is a long process which involves various stage in solving the problem. The employees of M& S
Ltd. can use different approaches in order to find solution.
Management- In M& S Ltd. some leaders need to play role of a manager by managing
the activities and employees and motivating them whereas, at times managers need to play a
leader's with providing new ideas and guidance to the subordinates.
Team building- The process of team building in M& S Ltd. involves managers and
leaders to create an effective team and to help them achieve the desired goals. A team needs a
leader to lead and guide them providing them with new ideas while they also needs a manager to
provide a structure of working with proper planning and organising function to maintain
efficiency in the organisation (Subramanian and Ramanathan, 2012).
Communication- The activity of communication is essential for managers as well as
leaders in M& S Ltd. The leaders needs to communicate their ideas and vision to the staff and
stakeholders for implementing the same and managers needs to communicate with the employees
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to provide proper guidance and motivation for better performance. Managers also communicate
with the top level to get directions regarding the further processes.
P3 Application of different leadership theories and approach
In an organisation to cope up with different situation, various leadership theories and
approaches can be used such as:
Situational leadership- According to this theory of leadership, a leader should be
effective and flexible enough to modify and change his behaviour with the subordinates as per
the requirement of the situation (Peng and Lai, 2012). It states that no single style of leadership is
considered as the best one instead it is developed according the relevant situation to adapt the
changes.
System Leadership- In this leadership style, the system is studied in order to identify and
discover the patterns and methods to apply at every level. This is based on the generally
applicable concepts and principles which are applied to the organisation. It enables the leaders to
provide proper means of understanding, analysing and designing the system of organisation to
increase the performance and profits of the company.
Contingency model- According to the contingency theory there is no best method to
organise, lead and make decisions in the company instead the preferred way of working is as per
the internal and external environment of the firm (Akkerman, Farahani and Grunow, 2010).
These factors of contingencies includes technology, suppliers, consumers, competitors, policies
governing the organisation, etc. A leader needs to be flexible to adapt as the business operates in
the dynamic environment.
M& S Ltd. being a large organisation needs to choose a leadership style according to the
working style of the company. The preferred leadership approach for the company is system
leadership as it has predefined structure and goals which makes it easier for the managers and
employees to achieve targets. Whereas, the other forms of leadership can also be used as and
when the situation arises.
M2 Strengths and weaknesses of different approaches to situations within the work environment
In M& S Ltd. various leadership and management approaches can be used analysing their
strengths and weaknesses for the company:
Trait Theory: The theory depending upon the human personality and characteristics
makes it easier to understand (Sheu, 2010). This makes it further simple to implement. The major
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element lacking in this approach is the ambiguous development of these traits and personalities.
However, it relies on accurate analysis and reliable data acquired and is free from bias but it
cannot be applied to the future as behaviour is unpredictable and no focus on improving the
positive traits is applied.
Behavioural Theory: The behavioural theory relating to the skills and behaviour of the
leader which considers only their actual behaviour and action instead of their traits and
characteristics. The favourable behaviour of the leader can provide better results in the
performance but it can only be established when the employees accept him as their leader. As a
single behaviour cannot be applied to every situation it can be tough for the leader to change the
leadership style according to the situations (Galindo and Batta, 2013).
Human Relation Theory: The main advantage of this theory is that managers and leaders
are more adept in interacting with the customers and subordinates. This helps them in the process
of problem solving, decision-making and improving productivity. On the other hand this process
can be more prone to mistakes as it is human based approach and the employees might not be
always as friendly which can create obstruction in the working process.
Chaos Theory: This theory is mainly based on creating goals and targetting problems or
increasing productivity (Yang, Hong and Modi, 2011). As an advantage it is largely applicable in
modern science and with latest technologies whereas, the shortcoming involves requirement for a
large amount of data and intense mathematics which can cause errors more frequently. A
company also requires huge funds and time but the results stated most accurate.
M& S Ltd. can between the theories to be applied in the organisation depending upon
their use and availability of funds. In this case most appropriate theory can be behavioural theory
as it is is easier to implement and understand for the employees and does not involve huge cost
or time.
D1 Critical analysis and evaluation of different leadership theories and approaches
Situational theory- As stated above this theory revolve around the fact that there is no
fixed preferred style of leadership and it has to be developed according to the situations. In M&
S Ltd. performed various tasks in different situations which requires different leadership styles to
adapt to. It is done to identify the leader with flexibility and adaptable approach in the dynamic
environment. This theory while is very effective in evaluating the qualities in a leader it might
not be applicable to the managers and their skills (Dekker, Bloemhof and Mallidis, 2012).
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System theory- As this approach involves applying the same leadership system and
structure overall in the organisation in all regions it is done without managerial control over the
organisation. The company M& S Ltd. should apply this theory to have a better understanding
and implementation of the plans. As it involves already tested principles and methods, it has
more chances of getting desired results (Brandon and Mullan, 2013).
Contingency theory- This theory is depended upon the contingencies arising in the
organisation and using methods and approaches according to the event. It is a perspective nature
theory which helps the company to become more flexible and adaptable. In application this
theory can be seen as complex and the leaders of M& S Ltd. May face problems in its
implementation.
TASK 2
P4 Key approaches to operations management and role of leaders and managers
Operations management being the practise of creating highest level of efficiency and
productivity possible in the organisation to maximise the profits. The various approaches can be
used in this process are:
Dynamic approach: This approach analysis the process of operations management in the
M& S Ltd. It consists of elements such as knowledge, learning, contingencies and problem
solving. It states that the elements of a situations should be considered as a part of the system as
it also form the complex part of the organisation.
System approach- This approach includes interactive and inter dependence of external
and internal factors of an organisation (Binder and Edwards, 2010). It is usually used to analyse
the market affecting the business profits and revenues.
Role of leaders in operation management: In the operation management environment
leaders play an important role which includes guiding on every level in the organisation. In M&
S Ltd. leaders combine personal goals with organisational objectives. Leaders are responsible for
providing direction and ideas in order to achieve the desired target.
Role of manager in operation management: The task and working of an operation
manager is dependent upon the size and type of the organisation. In M& S Ltd. managers are
responsible for managing resources, managing financial aspects of the company such as
budgeting and controlling, setting the goals and objectives for various departments,
communicating at different levels of the organisation.
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P5 Importance and value of operation management in achieving business objectives
Operation management process is managing different activities of planning, organising
and controlling the organisation (Nicks and Nelson, 2012). The importance of operation
management for the managers in the company are very essential as it helps to increase the
productivity and efficiency of the employees as well as helps in satisfying the demands of the
customers. These two factors are the main determinants in the success of a company in the long
run. The managers use the available resources to its maximum capacity with increase in the level
of production and reducing the waste cost. The customers are the main factors determining the
prices and demand for the products in the market which helps to increase the customer base of
the organisation through providing high quality services and products. In M& S Ltd. the process
of operation management plays an important role in making the production and efficiency level
of the whole organisation better to generate more revenue (Wu and Pagell, 2011).
The value of operation management for the organisation can be explained through the
process in which the management is being used. The company's operation manager is responsible
for managing the human resource to create more opportunities and performance level for the
employees, asset management in order to make sure the equipments and tools are available for
the operational functions, etc. These functions in M& S Ltd. have shown an increase in the levels
of productivity and efficiency as well.
M3 Ways to improve efficiencies of operational management to meet business objectives
Operations management includes managing a business with minimum resources in
limited time period without compromising on the quantity and quality of the production. There
are various ways to improve the efficiencies of the process such as:
 The main source of improving efficiencies in an organisation is through using the
available resources effectively to increase the production level of the firm.
 Another step involves planning an scheduling the activities in a way that working of the
organisation is done smoothly without any disruptions (Wang and et.al, 2010)
 Team work needs to be encouraged in the company to create healthy competition among
the employees which helps in their personal development and performance improvement.
 Another aspect of the operations management involves safety of the employees and staff
of the organisation. It helps to create a positive and safe working environment for people
which enables them to focus on their tasks and perform better.
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 The operation management process also includes the activity of providing training and
required infrastructure in order to provide proper facilities and opportunities to get
appraisals and recognition in the company (Naphade and et.al, 2011).
In M& S Ltd. the managers and leaders can involve in applying the above methods and
techniques to improve the efficiencies and productivity of the company. This will help the
company to create a better brand value and corporate image in the market.
P6 Impact of factors within the business environment on operational management and decision
making by leaders and managers
The process of operational management and decision making by leaders and managers
involves various factors to be considered (Nicks and Nelson, 2012). These factors can be related
to the business environment pertaining to the internal as well as external factors of it such as:
Internal Factors: The internal factors of a business environment includes the corporate
objectives as a main factor for influencing the working of the organisation. Thus, in M& S Ltd.
should not have any conflict in departmental and organisational objectives as it will hinder the
process of improvement. Finance involves all the factors relating to investment and cost in the
company which affects the available choices and opportunities for the firm. The quality of the
workforce and employees also determines the quality and efficiency of the overall organisation.
External Factors: The external factors of the environment such as economic,
technological, legal and environmental elements. The economic conditions in the market affects
the demand and preferences of the customer; technological environment is a dynamic element
which keeps changing frequently and company needs to adapt accordingly in order to maintain
the position in the market (Wang and et.al, 2010).
M4 Analysis of different factors affecting the business environment and wider community
The various factor affecting the business environment of M& S Ltd. can be described as
follows:
Political factors: The political factors includes the government, national and international
market policies affecting the working of a business, tax and environmental policies, etc. These
govern the working operations in a firm as stable government and itas policies have a positive
impact.
Economic factors: The economic factors affect the demand and supply of a product and
service in the market which determines the production units and prices. The elements such as
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economic growth, interest and exchange rates, etc. helps to plan the pattern of spending in the
customers (Functions of managers, 2016.).
Social factors: The factors related to the community and surrounding of a business
includes social factors which affects the purchasing decisions and preferences of customers.
Environmental factors: This factor has become one of the main factors recently affecting
the availability of the resources and location of the business. The business firms need to focus on
these elements to contribute to the society and community in which it operates (Naphade and
et.al, 2011).
D2 Critical evaluation of application of operations management and factors having impact on
wider business environment
Operations management is the functional area of the management in the organisation
which involves the proper designing and controlling of the process and redesigning the operation
of production and manufacturing as well. In M& S Ltd., the employees needs to identify and
ensure the efficient business operations and appropriate resources available to increase the
revenue and profit element in the company (What is Operations Management?, 2017). The
managers are responsible for ensuring the good quality of the products and services which helps
to improve the brand image of the company as well as maintain the position in the market. On
the other hand the company also needs to maintain a healthy competition in the market so quality
products and services are made available to the customers. For doing so, the managers in M& S
Ltd. needs to maintain proper methods and approaches in business operations management
(Management & Operations, 2017).
CONCLUSION
The above report focuses on the process of operations management in a business entity
with the help of an example of the company M& C Ltd. The roles and characteristics of leaders
and managers as well as their differentiation is explained using appropriate theories and
concepts. The report also states the roles of a leader and manager in context with different
situations and various approaches used to explain them along with their weaknesses and
strengths. The main approaches of operations management and its importance for the mentioned
organisation is explained. The methods used by leaders and managers to improve efficiencies to
meet business objectives and the factors of business environment affecting the operations
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management in the firm are given. Hence, proving the operations management as a crucial part
of a business organisation to succeed in the long term.
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REFERENCES
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Ergun, O and et.al, 2010. Operations research to improve disaster supply chain management.
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