Analysis of Operations Management and System Approach

The provided document is an analysis of operations management and the system approach. It includes a list of references from various research papers and articles, such as 'System Technology (POWERCON), 2016 IEEE International Conference on...' by Bromiley and Rau, 'The Impact of the Just-in-Time Approach on Production System Performance: A Survey of Italian Industry' by Filippini and Forza, and others. The document is likely a part of a past paper or solved assignment for students in operations management or related fields.

Management and operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Comparison the different roles and characteristics of a leader and a manager.................1
P2 Roles of leadership and functions of manager in different situations...............................5
P3 different theories and models of approach, through situational , contingency and system
leadership................................................................................................................................7
P4 The key operational approaches to operation management and roles of leaders and
managers.................................................................................................................................8
P5 Importance and value of operation management in achieving business objectives..........9
P6 Factors within business environment that impact upon operational management and
decision-making by leaders and managers...........................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management is the process of controlling people and things. It is the way of handling
situation and employees within the company. Operation is a highly organized activity that
involves many people who perform different business functions. Operation management is an
area of management concerned with planning, organizing and controlling. Tesco is a British
multinational groceries and general merchandise retailer public limited company. This company
was founded in 1919 by Jack Cohen. This Study lays emphasis on proper management structure
that help to address every department work. The difference between the role of manager and
leaders and their approaches which help them in handling different situation in organization (Al
Zahrani, Elsayed and Al Shahrani, 2016). This Report also shows the strengths and weaknesses
of different approaches of leadership and management. This also present discussion on different
key operation function and how manager and leader plays roles in these operations.
P1 Comparison the different roles and characteristics of a leader and a manager
Introduction of the company
Tesco is a British multinational groceries and general merchandise retailer public limited
company. Company was founded in 1919 by Jack Cohen as a group of market stalls. It is the
third largest retailer in the world. It has outlets in seven countries across Asia and Europe. This
company is the market leaders of groceries in the UK. It has diversified into some areas such as
the retailing of books, clothing, furniture, toys, petrol, software etc. Presently, 476,000
employees work with the company (Bromiley and Rau, 2016). The yearly revenue 55.9 million
in 2017.
Define leader and manager
Management - The main concept of management is to manage the people and their work. Simply
it can say that management manage the activities of the employees.
Leadership - Leadership refers to inspiring the employees for getting the effective work
from them.
Management structure of company
Tesco follows hierarchical organisational structure. In this structure, it divides position
and obligation into many parts to ensure that work will be done efficiently and smoothly.
Organisation focuses on the different departments in the business. The reason of using
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hierarchical structure is that the organisation is large and has multiple layers within firm. The
main aim of using this structure is to provide the best services to the customers in the business. It
helps Tesco to fulfil their purpose by satisfying the customers' needs (Filippini and Forza, 2016).
Definition of Leader- A leader is a person who influence a group of people towards the
achievement of goals (Reeves and Lowenhaupt 2016). A person who leads a group of people and
organization for creating an inspiring vision of the future for employees. Leadership is a function
which is important at all levels of management. At the top level it is important for getting co-
operation in formulation of plans and at the middle and lower level, it is important for execution
of the plans.
Definition of Manager-A person who is responsible for the management in the
organizations is called manager (Noe, Tews and Michel, 2017). It ensures that the available
resources are well organised and applied for the best result.
There are some roles of leaders and managers which they play for the organisation that
help them in achieving the goals: Setting a clear vision, motivating employees, guiding
employees, building morale, manage the people and the activities of employees, dealing with
customer queries and complaints etc (Juahir and et.al., 2017).
Comparison roles and characteristic of leaders and manager
Leader Manager
The main role of leaders is to create a vision
for the company. For turning this vision into
reality they do all the possible things and
engage their people within organization.
Leaders know the importance of collaboration
and that is why they focus on high functioning
teams which help in accomplish the task and
goals.
On the other hand, manager create goals for the
company and adopting ways for achieving that
goals.
Leaders know that failure is the path and step
of success. They try to take risk for getting
success and always try to do new things after
failing most of the times.
In contrast, manager try to minimize risks and
try to find out the problems of failure and
control problems.
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Leaders focus on the stakeholders that include
customers, suppliers, shareholders etc. They
know that their success in depends upon the
hard work and efficiency of stakeholders so
they try to fulfil their all the needs and build
healthy relationship among them
Managers focus on the structure and processes
which help them in achieving goals (Ross,
2017).
Leaders know that their employees have ability
to have all the answers and see them as a
competition. They tell to employee the method
of doing task and what to do.
Manager allocates the task and guide them that
how to complete this task.
Roles of leadership and functions of manager
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Basis Management Leadership
Attitude towards goals Take an interpersonal, passive
outlook.
Take a personal, active outlook
rather than respond to ideas.
Role Manager manages the
employees and make plans
details (Mahadevan, 2015).
Role of management is to
provide strategy, guidance and
direction for implementation.
Leaders role id to, leading
employees towards achieving
clear goals. The individual
creates a vision amongst
employees and implement the
strategies which managers
make and provide them.
Relation with others It prefers working with people,
but maintain minimal
emotional involvement.
It attracted to ideas, relates to
others directly and em
pathetically.
Responsibilities Management is responsible for
the decision-making in Tesco.
It works with their employees
to achieve common goal of the
company. It also decides the
uses of capital resources
within an organization.
Leadership responsibilities is
more than management
responsibilities. Their
responsibilities are to maintain
ethics and integrity in the
association and tries to
achieve team goals with the
help of employees.
Focus Management tries to bring
stability in their employees. It
focuses on things, plan,
organization, control etc.
Leadership tries to encourage
their employee for fulfilling
their all the needs and
demands. It focuses on people,
influence them, motivate them
and tries to build the
relationship among them,
Orientation Task oriented People oriented
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Driven by It is driven by formal authority
and the management position.
It is driven by passion,
creativity and imagination.
Authority A manager makes use of
formal authority to direct the
subordinates.
A leader exercises his
influence over the followers
through the use of informal
authority.
P2 Roles of leadership and functions of manager in different situations
a) different decisive situations
Managers and leaders have various roles and functions in different organizational
situation. They play a significant role in Tesco. There are some situations in the business that
happens in business are as follows:
Conflicts between individual and group- There are many reasons by which conflicts
arises in the company for example, if a group is going on strike for some reasons but some
members do not agree with that reasons or may not be able to afford to go on strike, thus
conflicts cause with the group. The role of manager in solving the conflicts is it focuses on
building the relationship and tries to fulfill their all the needs for building the effective
relationship among group. It identifies points of agreement and disagreement. It provides conflict
resolution training to employees and leaders. It helps staff develop positive work relationships.
Labor turnover- There are many reasons that leads in increasing labor turnover that
includes: low wages, bad working condition, bad treatment, etc. With the help of human relations
theories of management, the role of manager of Tesco is focused on aligning the needs of the
employees with the need of the company and adopts policies related this situation which aim at
their mutual benefits.
Miscommunication- Communication play a vital role in company. It is important for
Tesco's manager that they have to convey right messages to their employees and also to team
leaders. Leaders also have to sure before delivering message to employees. It will help to
improve productivity of team as well organization.
b) Managerial functions through approach
System approach of management: System theory approach is based on the
generalization that everything is interrelated and interdependent. It is used to evaluate market
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elements which affect the profitability of company. The strength of this approach is to solve
internal problems and expand opportunities. It helps the manager in managing purposeful,
unified system where every functions and departments are interrelated. It is useful to
management of Tesco because it aims is to achieve the objectives and views organization as an
open system. It helps in supporting leadership theories as it focuses on building relationship of
employees within the organization.
It has some weaknesses also like it cannot be apply on practical problems that leads to
delay in decision-making. It does not cater to particular style of functioning in the organisation
(Otley, 2016).
Traits approach of leadership- The trait model of leadership is based upon the
characteristics of leaders. This theory consider personality, social, physical that differentiate
leaders from non-leaders. It is used to predict leadership effectiveness. The strength or
advantages of this approach is it is valid and gives a detailed knowledge and understanding of the
leader elements in the leadership process. The weakness of this theory approach is it is very
complex. By giving constructive and proper information about leaders it can help manager to
identify and select the best leader in organisation. It can be applied by people at all levels in all
types of organisation.
Behavioral approaches: Behavioral approach of leadership focuses on the behaviors that
effective leaders engage in leader reward behavior, punishment behavior, etc. The strength of
this theory is that it helps leaders to maintain balance for the task and leaders can observe people
behavior with the help of this theory (Ramesh, Manickam and Prasanna, 2016). It helps in
increasing self-belief and building confidence. The weaknesses of this is that it is a one-
dimensional approach to understand human behavior. Through this theory leader learn the
behavior but it does not mean that this theory act as properly.
Classical management theory
a. Classical scientific management theory: This theory of management emphasizes to
increase worker's productivity of organization. The main aim of this theory is to improve
economic efficiency. It helps manager in increasing sales and decreasing cost of the company.
B. Behavioral theory of management: This theory help manager in better understanding
of human behavior work. It focuses on employees needs which can satisfy them at workplace. It
may include good working condition, pay and benefits etc.
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C. System management theory: The main aim of using this approach is to evaluate
market elements that affects business's profitability.
c) Roles of leaders in different situations
According to contingency theory, leaders plays roles as it focuses upon the connection
formed between followers and them. It also focuses on the relationship between leadership style.
In this situation, leaders motivate and inspire people by helping group members to see the
importance and higher good of the task (Maleknejad and Shahabi, 2019).
Situational leadership theory states that leaders prefer different leadership style
according to the different situation and condition. According to this theory, leader of Tesco
handle miscommunication situation which happens in the team. In this situation, using this
theory leader use effective and easy language to communicate to their team members. It helps
leaders to handle this situation effectively. This help to understand the needs of follower and gain
their trust.
Styles of leadership
Autocratic leaders: Autocratic leadership style take all authority which include decision-
making process etc. They do not involve their employees in decision-making process and do not
give flexibility to their employees.
Democratic leadership: This type of leadership involve their subordinates in decision-
making process. There are some characteristics of this style that it has creativity, fairness,
courage, intelligence, honesty etc. It is the best leadership style which increase employees morale
and decrease labour turnover.
P3 different theories and models of approach, through situational , contingency and system
leadership
There are some strength and weaknesses of leaders and managers which affect decision-
making and help theories of leadership that include listening skills, team work, confidence,
reliability, resistance to change, underestimation etc.
Style approach: Style approach of leadership lay keen emphasis on behavior of a leader.
It generally focuses on the style and way of the act which leaders do. The strength os this
approach is it focus on goal accomplishment which help staff and employees to meet their
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objectives. It also helps situational theory of leadership as it know the ways hoe to deal in
different situations. This approach of leadership maintain the balance and help them to acquire
feedback from its followers to know that how they are doing.
System theory of leadership refers that organization prefers different management
theory according to the situation and condition that happens in the organization. Leaders of
Tesco creates safe work place for the workers where they feel safe. They play some roles in this
situation as it provides some benefits like compensation and incentives to them for motivating
them and decrease the labor turnover. They provide safe working environment to their female
employees. This theory helps to manage system of work environment. This supports to
innovating and creating in Tesco.
P4 The key operational approaches to operation management and roles of leaders and managers
Operational approaches and strategies refer the methods that Tesco uses to accomplish
their defines goals. Some operational approaches to operation management are: Just in time
approach, total quality management approach, lean management and six sigma approach.
Just in time approach- Just in time is a common inventory management technique
which is used by Tesco to increase efficiency, cut costs and decrease waste. Nowadays Just in
8
Illustration 1: system approach
Sources: (System approach, 2014)

time systems are used by many businesses. There are some benefits for using this system in an
organisation- improve cash flow, less dead stock, as inventory level depends on customers'
demands so there is less risk of unwanted stock (Thompson and Glasø, 2015).
Lean management approach- Lean management is an approach to running an
organisation which helps and support organisation in continuous improvement and in improving
efficiency and quality of products. Tesco uses this approach for eliminating some factors like
waste time, efforts and money. The main aim of Tesco for using this approach is to reduce waste
materials and create more value for consumers. The three main lean techniques are Kaizen,
Kanban and 5S. Kaizen is a philosophy which focuses on continuous improvement at workplace.
Six sigma approach- Six sigma is a management philosophy which focus on making
continuous improvement and brings improvement into various process. It is important for Tesco
because it focuses on improving quality of final product by eliminating causes of defects. It helps
manager of company because it creates a special infrastructure of people within the organisation
who are experts in this process. The main aim of this approach is to satisfy all the needs of
customers that is why it focuses on customers requirements. There are five steps in this approach
that include define, analyse, measure and control for solving any type of problem.
Total quality management approach- Total quality management is an approach which
Tesco uses to improve their internal process for increasing customer satisfaction. There are some
principles of total quality management approach that include- Customer focus, Teamwork,
statistical method and obsession with quality. The main aim of this approach to decrease costs
related to maintenance, improve performance of employees and increase number of happy and
loyal employees (Bromiley and Rau, 2016). It helps manager to maximize productivity as it is a
customer focused process and tries to fulfil their all the needs and demands. Characteristic of
this approach is usability, attractiveness, time behaviour, ability of learning, efficiency, reliability
etc.
P5 Importance and value of operation management in achieving business objectives
Importance of operations management
Operation management involves controlling production process which is b=very
important in business operations. It deals with improvement of the system. Controlling and
distribution function of operations management play an important role in business as they are
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responsible in controlling all the process related production and proper distribution in order to
fulfill mission and objective of Tesco.
The impact of Managers and leaders on workplace engagement affects Tesco. Managers
and leaders help their team members to enhanced their skills whereby employee gain the
confidence and do their work effectively. They set objectives and motivate employees by
providing training for developing the skills whereby company easily achieve their target through
the skilled employees (Ross, 2017). They also help to increase the productivity because effective
work of team members is beneficial for the Tesco. Leaders of Tesco affect organisation by
maintaining relationship of employees. Authentic leaders promotes openness which make them
able to find possible solution to work based problems. Managers also organize all the work by
dividing it into manageable activities and allocate this to relevant employee and team member.
They play very important role in organisation because the individuals manage group
interest and efforts for organisation and self-success. Managers and leaders are decision-makers
so their action have leverage impact on the organisation. Managers are expected to make
businesses work profitability or according to the needs of the moments. They are responsible for
the smooth running of a business and so they are so important for a business.
Managers of Tesco engage staff members though positive management which is very
important for accomplishing team goals. Poor management leads stress at workplace among
employees which affect the relationship of employer and employees. Poor communication
sometimes lead confusion and lack of understanding which become the reason of conflicts and
ineffective work. An ineffective manager affect company's overall values and potentiality of
employees which causes unhappiness and higher rate of labour turnover.
By maintaining proper supply of products, company can fulfil objective of organisation.
Manager and leaders can ensure the right design at right time with the help of right peocess and
by that it also can help in improving and achieve Tesco objectives.
Values of operations management
Value of approaches- Company use Total quality management approach to improve
their internal processes and increase customer satisfaction. Quality management value lies in its
ability to help companies for improving their products reliability, durability and performance.
Six sigma approach helps company in improving business processes by using statistical analysis.
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This results in efficient business and productive employees. Just in time approach adds value by
increasing efficiency. It eliminates the cost of raw material, inventory and product storage.
Recommendation for the future improvement- For the better development of
company, manager and leaders should focus on transparent communication because it is the
important element for the development of an organisation and motivation of employees. This
will help manager to boost employees morale and leaders in resolving problems at workplace.
Manager should provide the better working environment and should include employees
in decision-making process. It helps employees in increasing morale and building trust within the
organisation. It makes the process easy as employees provide the information and better advices
for decision-making process.
Introduction to the key operation of organization
Operation management of Tesco is concerned with managing the resources in of
production, manufacturing and logistics. It is a multi-disciplinary field that focuses on managing
all aspects of an organization's operation. It involves utilizing resources from staff, materials,
equipment and technology. Operation manager acquire develop and deliver goods to clients
based on customers' needs and the abilities of the company. It handles various strategic issues
that include determining the size of manufacturing plants and project management methods
(Schyns and Riggio, 2016).
Key operations of Tesco- One of the most important strategy of Tesco has to do with
customers' benefits. To win customer's loyalty, It introduces loyalty cards. This help company in
collecting vital information about the customers. To get the necessary data it should conduct
surveys. It has also focused vocal at improving the delivery system and innovating the supply
chain for better quality services delivery tom customers. To improve supply chain management,
Tesco embraces new technology by introducing the RFID technology.
Key operational functions and the roles and responsibilities of manager in these operations
Operation management is the business function which is responsible for managing the
process of creation of goods and services. Some key functions of operation managers include:
Finance, strategy, design of the project, forecasting, managing the quality etc.
Quality management- Quality management plays a vital role in selling of products. That
services and product produced by the company conform to declared quality at the minimum cost.
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The role of operation manager in quality management is to allocate the task of quality
management to a team and then supervise their task. They identify defect in the projects and then
rectify them to ensure quality. Planning process and function play important role in any
organization. While planning functions it is important to analyze the factors which affect this
process. Planning help in quality management.
Strategy: Strategy defines the art of planning that can help company and manager to
know about the supply channels, way of input products, and optimize the resources.
Supply chain management- The main motive of supply chain configuration is to ensure
effective management, monitoring and controlling of logistics of the organization. It starts from
the supply of the raw materials and end with the production of the final product and then their
selling to the customers. The role of manager in this operation is to make recommendation to
improve quality, productivity and efficiency of operations. For this it uses some technology
which help in improving employee efficiency of the work of goods processing.
Finance- Finance plays a major role in operation management. It is important for Tesco
to ensure that the organisation's finance is being utilized properly to carry out another major
functions like creation of goods or services which is important for satisfying the customer's
needs. The roles of manager in finance is to make and carry out strategies to raise capital and
develop financial plans (Yunoh and Ali, 2015). They observe the firm's credit business. Manager
are responsible for the financial health of an organization. They produce financial report, and
develop strategies and plans for the long-term financial goals. Organizing function also help in
finance process and function. By organizing all the resources, company can improve and handle
finance related process.
Design of the product- It is the duty of operation manager is to ensure that the product is
designed according to market trends and needs of the customers. Nowadays customers are very
concerned about the quality of the product than quantity. Product design managers propose
budgets for upcoming projects.
Forecasting: Forecasting is a process of estimating the demands of the products that can
be occur in the future. It is also the important function of operational management that assumes
customer's demand and requirements for producing products and services accordingly. By
forecasting manager can identify and get to know that requirements of production like quality,
quantity.
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P6 Factors within business environment that impact upon operational management and decision-
making by leaders and managers
There are some external environment factors that affect business and decision-making process of
leaders and managers:
Political factors- Tesco is operating in 12 countries including Asia and Europe. There
are many political factors like tax rates, current legislation, unemployment rate and the economic
condition of the country that affect the operations of Tesco. For example, import duty, it effects
on company because it imports some inventory from outside. It may affect the decision-making
process also because the hike in the tax can directly affects the cost and the planning of finance.
Lack of political stability in a country effects business operations. It leads to riots, looting and
general disorder in the environment. For these reasons leaders may changes in the decision
which they made for the betterment of organisation, Hence, it affects their decision-making
process,.
Economic factors- Economic factor is one of the major external factors that affect
company. Labour cost is an important factor that affect Tesco for example, if there is an
increment in labour cost then it will directly affect the costs and prices of products and decrease
its profits (Juahir and et.al.,2017). Diversification and presence in international market are main
strategies and the reasons for success of the company. For example company make the decision
according to cost but because of sudden change in labour laws like the payment of bonus act,
equal remuneration act, payment of gratuity affect it as it can increase the cost of organisation. In
the process of decision-making, values play important role as values of people help organisation
top make the planning related decision-making and also to implement it.
Social factor- There are some social factors like changing the demands and market
trends which are constantly changing over time. If company make the huge amount of products
according to demands and need of the customers but after some time they change their needs and
demands then it will affect the company as it have to bear lose.
Technological factor- Many companies are adopting new and effective technologies for
improving development which increases the competition in the market. Technical factor directly
affect the manager decision. Due to competition, company need to change their technology.
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Because of the changes in technology manager and leaders feel the need of training for their
employees. Training programs are necessary when company uses new technologies (Otley,
2016).
Legal factor: There are many legal factors that affect Tesco's business such as changes in
law, restriction on export of products etc. The legal factors are major concern for Tesco like
Export import restrictions. High restriction on export of products is a threat for Tesco as it can
decrease their sales and revenue (Bromiley and Rau, 2016). If government give relief on these
restrictions then company can easily export its products in various countries increasing its sales.
Improvement of operational efficiency to successfully meet business objectives using
appropriate management and leadership approaches
Ethics: For following CSR, company should practice ethical business and try to make
sure that organisations' activities do not harm and hurt the stakeholder like customers, suppliers
etc. The main aim of Tesco is to benefit to its stakeholder by its effective activities. Leaders and
managers should ensure that country's mission and vision should be modified time to time, to
comply with CSR and business ethics.
CSR: CSR policy affect business organisation of in which Tesco tries to improve society
according to demands and needs. This policy also affects decision-making process of company
as contents of this policy make the company to make those decisions which are ethical in nature
and helpful in the welfare of the stakeholder. In decision-making process, values also play
important role as values of employees and people help organisation that help them in making the
planning related to decision-making and also to implement.
Corporate culture: The culture of organisation or a particular place also play a vital role
in the process of Tesco like decision-making process. Company make the decision be keeping in
mind all the factors and cultural background of corporation and particular place like cultural
diversity of the place etc.
Corporate value: Value can be defined as standard of an individual's behaviours. Values
are given very big importance in decision-making process because values of people help Tesco
to plan and implement decisions. All the services and products are modified and developed after
analysing the values of customers of the company.
For achieving the organisational goals and for successfully meet the business objectives
Tesco need to improve operational efficiency. There are some ways which manager of company
14

can follow for improving operational efficiency such are: Improve customer service, remove
barrier to success, review processes with the help of situational theory, contingency theory and of
leadership.
Resource utilization- To get the most value from resources and eliminate waste in
production and operations is called operational efficiency consideration. Efficient production is a
major element of operational efficiency. It includes optimizing equipment, product processes and
employ output for producing the greatest number of quality products possible. Cognitive
resource theory of leadership help manager in better utilization of resources because it focuses on
performance and intelligence of employees and leaders.
Inventory management- For all distribution channel members, inventory management is
key in operational efficiency. Just in time inventory concept and approach become helpful in
many distribution channels. It helps manager and sellers as they want to produce or hold enough
inventory to meet immediate demand.
Expectations of stakeholders
Stakeholders: Stake holders of Tesco are those who invest in company in any form and
get affected by company's activity. They can affect and can be affected by organisation's
activities and policies. There are mainly five types of stakeholders such as: project manager,
sponsors, customers, functional management and project team. There are some expectations
which stakeholders of Tesco have such as:
Expectations of employees: Every type of employees of company expect more like
monetary and non- monetary benefits which need to be provided to them.
Expectations of customers: Customers of Tesco expect good quality products from
company. They want quality products and services at reasonable prices.
Expectations of suppliers: Suppliers of organisation generally expect prompt payment
as per the terms agreed upon. They feel de motivated when company keep and take low margins
and delayed payment.
Conclusion and recommendation for future improvements taken by the organization
The discussion presented operational functions which are important in every
organisation. The roles and responsibilities of managers and leaders played a vital role in these
operational functions in achieving the team goals. Some external environmental factors which
majorly affected Tesco in positively and negatively like social factors, economic factors like
15

changes in legislation, social demands, etc. Which also influences decision-making of leaders
and managers of Tesco.
Recommendation
For better and effective performance, company should focus on some points and
problems which are creating a big barrier in the development of Tesco. It should provide the
better customer service like home delivery, better and attracting packaging etc. For improving
operational efficiency, manager can improve management of inventory by applying the
leadership theories or approaches of operation management. Happy and satisfied customers help
organisation in maximizing profits and productivity (Ramesh, Manickom and Prasanna, 2016).
CONCLUSION
From the above study it has been concluded that roles of leaders and managers play a
major role in accomplish the desired goals of the company. It showed about different situations
which are barrier in the growth of organisation like labour turnover, conflicts amongst employees
and diversity within organisation and the functions of leaders and managers which helped them
in removing these barriers. It also showed that the value and importance of key operational
approaches like six sigma approach, lean management approach in organisation.
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