The Operational Approach to Management

Application of management &
operation approaches and techniques
in organisational context

Table of Contents
INTRODUCTION...........................................................................................................................2
LO1..................................................................................................................................................2
P1 Difference between role of a leader and role of a manager....................................................2
LO 2.................................................................................................................................................6
P2 Situation affects the role of a leader and functions of a manager..........................................6
P3 Leadership theories................................................................................................................7
LO3..................................................................................................................................................7
P4 Key approaches of operation management and role of operation manager...........................7
P5 importance of operational management in achieve business objective..................................9
P6 Factor affecting operation management Pizza Hut..............................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
1

INTRODUCTION
This file will lay emphasis on different roles of a leader and of a manager, difference
between leader and a manager, functions of management, theories of leadership, hard and soft
managerial skills, role of a leader, functions of a manager, theories of management, operational
functions of an organization, an understanding of the relationship between leadership and
management in a contemporary business environment. All the above content will be explained
through Pizza Hut as an example.
LO1
P1 Difference between role of a leader and role of a manager
Management: Different people have different definition of management, For some it
means to commanding others, for some it means nothing more than doing some work and putting
signature on some papers but in reality management means that is a process of organizing,
planning, organizing, staffing, co-ordinating, directing and controlling business enterprise
activities. It can also be said that management is a process of achieving organisational objectives
by working with or making people work and managing other resources of an organization.
( Glinkowska, 2017)
Different theories of management
 Behavioural management theory: It is also called human relations movement because it
focuses on human dimension work. Theorist believed that understanding human
behaviour improved productivity such as motivation, expectations, conflicts and group
dynamics.
 Contemporary management approaches: Classical and behavioural theories focused on
the internal working of an organization more. However, nowadays interaction of an
organization with external environment is given more importance. Contemporary
approach may include system theory and contingency theory.( Lynch, 2015)
◦ Contingency theory: In this theory theorist believe that each organization has its
unique circumstances and as a result based on the situation management approaches
should be selected. This theory believes that managers may take decisions based on
the situation instead of 'one for all' method.
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◦ System theory: In this theory it is believed that organizations are system composed
set of interdependent parts who coordinate their work to achieve common
goals.( McCleskey, 2014)
Difference between leader and manager
Leaders Managers
 Leaders are persons who has the ability
to influence others to follow them to
achieve specified goals.
 They promote changes.
 Focus on effectiveness
 They set directions
 Their aim is development and growth.
 They create their unique style keeping in
mind of innovation, authentication and
transparency(Ning, 2015)
 Managers are the persons who manages
the organization in such a way that they
may be responsible for organizing,
planning, direction, control and
coordination.
 They react to changes
 Focus on efficiency.
 They plan details.
 Their aim is to achieve result.
 They tend to copy others, adopt their
style and learn from them.
Functions of management:
 Planning: It is always future oriented and always determines direction of an organization.
Decision making has a very rational way which may affect the future of the company. In
this prediction of future is done and an attempt is made to control the future events.
 Organizing: A proper structure of authority, flow and direction is required in this through
which subdivisions of work are defined, coordinated and arranged so that each
department of an organization is coherent and unique to achieve predefined objectives.
 Staffing: Staffing is basically to recruit, hire and retain workforce which is suitable for
the companies both non managerial and managerial levels. In this following tasks are
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done suc as training, recruiting, developing, evaluating and compensating employees and
to maintain their employees with proper motivation and incentives.
 Directing: It includes communication, leadership, supervision and motivation so that all
the worker's performance is in the most effective and efficient manner possible to achieve
desired objectives.
Theories of leadership:
 Trait theory of leadership: It is based on both unsuccessful and successful leaders
characteristics to predict effectiveness of leadership. Then the resulting list is compared
to all the potential leaders to see their success or failure likelihood.
 Style theory of leadership: It differs form trait theory as it doesn't focus on who are the
leaders but instead it focuses on what they do. This theory say that leaders have two types
of behaviours i.e. relationship behaviour and task behaviour and combine these two for
effective leadership.
 Contingency theory of leadership: This theory says that leadership style differs from
situation to situation and leader must find out that what leadership style fits or matches
the situation.( McCleskey, 2014)
Transactional and transformational leaderships:
 Transactional leadership: When in a leadership rewards and punishments are employed
for motivating followers is known as transactional leadership. Leaders focus on their
relationship with its followers. Their leadership style is bureaucratic. This kind of leaders
are outcome and task oriented. There is only one leader in this. Transnational leadership
is best for organisation which have fixed operation activities like it is best for
manufacture unit of organisation. Department that demands creativity must not use this
leadership. Limitation of this leadership style is ““one-size-fits-all”, which is not realistic.
This leadership style increases the team productivity(Lynch, 2015)
 Transformational leadership: This kind of leaders focuses on increment of workers
engagement and motivation. They lay emphasis on ideas, values, need and morals of their
followers. Their leadership style is charismatic. This kind of leaders lay emphasis on
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leading as an example so that all the followers can identify their visions and values.
While in there are more than one leader as in an organization such as Pizza Hut.
Transformational leadership is best when team has self motivated people. This model
help in stimulate intelligence and creativity. Leader face difficulty to identify
motivational need of individual. This is very ideal approach which is far from reality.
This is not suitable for labour and project team which required high level of
guidance(Glinkowska, 2017)
Action Centred leadership: one of the biggest challenges of proper leadership is to
balance various interest of those who are required to lead. Everyone doesn't have same
aspirations and goals even if they are working in the same organization or business. So it's the
gob of a good leader to manage various interest, so that they can be brought together in the right
way to keep the team working. Action Centred leadership is best for general training, and
learning purposes. Action centred leadership is disaster for A team having large number of team
member because leader has to equally focus three dimension for insure the efficiency of work I.e
task, individual and team. Leader can lose its control on these dimension due to large team size.
Hard and soft management skills:
 Hard management skills: Skills that can be measured and defined like writing, typing,
reading and ability to use programs. Hard skills can be quantified as earning a degree,
proficiency in a language, computer programming, machine operations etc. These hard
skills are often mentioned in resumes or cover letters.
 Soft management skills: Soft skills cannot be quantified or they are subjective skills. Soft
skills are also called interpersonal skills or personal skills. Soft skills are related to the
way we relate with other people. Examples of soft skills are: leadership, motivation,
patience, teamwork, time management, problem solving ability, work ethics etc. Unlike
hard skills evidence so soft skills cannot be done(Bryce, Flintsch. and Hall, 2014)
LO 2
P2 Situation affects the role of a leader and functions of a manager
Leader is the person who is responsible for guiding and leading a group of employees.
And to make sure that the team can work in a systematic manner & should be potential and
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committed to achieve the goal, by using the framework which is designed and implemented by
the leader.
In every organization leader's main role is to lead the employees and guide them and
create inspiring vision and motivate the employees to reach that vision. But there are many
situation which can affect the role of the leader in an organization.
Situational Leadership Approach: This term of leadership style is very flexible among all. The
situational leader can adopt various leadership styles which suits the situation of the
organization. This model is created by Ken Blanchard and Paul Hersey in 1960's. The leader can
use this model to analyse the need of the current situation and select the most fitted leadership
style according to the situation.
This model is categorized in 4 types of leadership style, that are:
 Directing- This style can used in that situation were employees capability is low and
they need the guidance and supervision of the leader. It is one way communication
because the leader announce his decision. Direction leadership is best for production
team, because production employee has to work on machine that can cause physical
hazard. Apart from it every organisation choose Directing leadership style for new joined
employee because these new employee need more guidance as they are unaware about
company's culture and process(Kerzner. and Kerzner, 2017)
 Delegating- In this situation control and last decisions are of the followers, they are of
high skilled, and have high commitment to their work. Organisation use delegate
leadership for Employee who are much experienced in their field because these seniors'
employee have capability and motivation both to finish the work by themselves.
 Supporting- When the follower are highly skilled, but they still want the encouragement
and support of the leader. Supporting leadership are suitable for the employees who have
enough experience and knowledge but they have lack of confidence and motivation. For
instance research and development team have idea for innovation but they have lack of
confidence about their idea, in such case leader encourage the team.
 Coaching- The situation when there is some capability but if there is no commitment of
work by the follower, this style suits the situation very well. In this leader take the ideas
and suggestion from the team member, but the last decision is of leader only. Such kind
of leadership chooses after getting the information of employee about their capability and
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behaviour. If leader find that an employee have strong will to do task but they have lack
of knowledge. Leader design training and development program based upon individual
learning need.(Jiménez-Jiménez and et.al., 2015)
P3 Leadership theories
These are some situation which changes the role of leader.
System Leadership Approach: Sometimes individuals and organizations have different
objectives and requirements. In that complex environment the system leader have to analyse the
different key factors and select one right answer which can be beneficial for the organization. It
is a straight forward, unbiased leadership style. System leadership approach helps in to enable
the leaders for creating the condition where followers can work effectively according to their
potential. This style create models or outline of a good leadership by using the sound principle,
by this they can analyse human behaviour make organizational strategy(Lai, Lin. and Lin, 2015)
Task or Relation Oriented Leadership Approach: Both approaches are based on their
own characteristics and importance in their field. They both are based on the behaviour of team
members. In Task Oriented Approach, the leader concerns with the given task which should be
perform by the team member to achieving the particular goal. And Relation Oriented Approach
focuses on motivation, satisfaction of followers and their happiness(Ning, 2015)
LO3
P4 Key approaches of operation management and role of operation manager
Operation management deals with maintain efficiency of production department. Operational
management include all the managerial function like planning, staffing, organising and
controlling. Pizza hut practice operation management practice to achieve high customer
satisfaction. Company check quality of its product and manufacturing process at each level like
mixing, baking, freezing, filling, and packaging. Following are the major operational
management approaches.( Christopher, 2016)
Total quality management(TQM)
TQM is very popular operational management technique because it is used by
almost every organisation because of its holistic approach of improvement. All department of
this company contribute to improve the product, service and process in organisation. In TQM
technique organisation tries to adopt practices and effort which automatically help in
improvement. for instance pizza hut's organisation culture include customer satisfaction as its
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prime concern so employee take this concern very serious. Apart from culture organisation aslo
use RFID in warehousing and logistic, AI augmented machine in production, integrated
information system across the globe to share the information among its department, corrective
action are taken on the basis of these information. TQM identify the defect and error
continuously and take corrective action as soon as possible which eventually help in achieving
organisation vision and mission.( Jiménez-Jiménez. and et.al., 2015)
Six sigma approach-
six sigma is the process variation improvement technology which help pizza hut to
identify the cause of defect. This cause is defined as problem, after define the problem operation
manager analyse the cause of variation and take corrective action and follow up. Objective of six
sigma is used to get seamless and defective free product and service. For instance Operation
manager of pizza hut find an issue regarding pizza delivery within 30 minutes. This problem
occurred due to poor communication between delivery boy and order receiving staff. Manager
tried to solve this problem by using CRM. He also asks to customer for feedback to know that
problem is eliminated or not. (Sunder , 2016)
Operational manager is responsible to set standard of product and process so that veneration and
defect can be easily identify. Production manager of company insure proper supply of raw
material like floor and food oil, manager is also responsible to maintain optimum inventory.
Operational manager help organisation to maintain quality of its product by reduce wastage and
human errors in production. Manager communicates with other department like marketing
department for increase and decreases their marketing efforts. He helps finance department to set
reasonable price by maintaining cost of the product. Pizza hut’s' 30 minute pizza delivery
strategy gets success because of its efficient supply chain and logistic which is also a major role
of operational manager. (Ning, 2015)
P5 importance of operational management in achieve business objective
Operation management deals with improving the efficiency of production and other
activities of pizza hut, operation management have tangible and intangible positive outcomes.
Tangible result can be seen as improved production process and less wastage and errors in
business activities, intangible outcome comprises improved brand loyalty, lower employee
turnover ratio, and high customer satisfaction. Pizza hut has best CSR policy in industry which is
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impossible to get without help and support from production department. (Kerzner. and Kerzner,
2017)
 Operational management help in improve and increase the overall productivity of
organisation by analyse input and output ratio on periodic basis. For instance Pizza hut's
marketing team use data analysis, customer feedback, profitability control to measure
marketing performance.
 Operational management help in manage cost of product by insight the product process.
Pizza Hut use liquid chromatography-mass spectrometry/mass spectrometry for test its
Pizza quality (LC-MS/MS)
 Operational management of pizza hut help marketing department by providing on time
product and service delivery. To make co-ordination between marketing and other
department Pizza Hut uses RFID and maximise the use of Internet Of things.
 Human resource department get help in define job role and responsibility on the basis of
information provided by operation manager regarding required knowledge and
experience for work. To effectively manage human capital, Pizza hut take help of Human
Resource Management System or HRIS (Oreggioni, and et.al., 2017)
 Training and development programme also conduct on the basis of operational manager
advice, it help in reduce employee turnover ratio and increase the employee satisfaction.
Operation manager is responsible for making innovation in product and process sop that
customer satisfaction goal can be achieve. Pizza Hut acquire software system like for TAEASS502
Design and Develop Assessment Tools to recognise prior learning (RPL) need. It keeps its human
capital in this software and
 Legal department of organisation also get indirect benefit from operation department by
provide well managed and quality product. For instance if Pizza Hut ignores the
importance of operation management, it can affect the Pizza quality. When an inferior
quality Pizza delivers to customer , then customer can file case against company, which
put burden on its legal department.
 Finance department to raise capital from market by improve the brand image among
customer. Pizza Hut has good reputation in market because of its quality product. People
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have trust on company. So it will help finance department to raise fund by the name of
Pizza Hut in case company has any expansion plan(Sunder , 2016)
 Over inventory and under inventory both have different problem associate with it. For
instance if pizza hut has extra raw material in warehouse, it can be covert into perishable
goods , on the other hand if there is inadequate inventory raise problem in full fill the
demand of customer . So operation pizza hut’s manager solves this problem by using
RFID in warehousing.
 Operation management help in reduce the spiral effect of any defect and error. For
instance if pizza hut find problem in pizza making machine, it tries to repair it as soon as
possible because defective machine will produce large quality of defective pizzas.(Bryce,
Flintsch, . and Hall, 2014)
 Pizza Hut use Operation management tool like six sigmas and TQM.
 Lack of wastage in production process help in cut the recycle and wastage management
cost.
 TQM help in improve product flow and design.
 Sound and quality product help an organisation to access the global market, increase the
brand loyalty and customer retention.
P6 Factor affecting operation management Pizza Hut
Increases emphasis is going towards reduce waste, recycle and reuse product parts.
Operation stage-management decision get effect through different measures. Such as through
finance, human resources, marketing issues and so more.( Park, Chae. and Jo, 2017)
Internal factors
Finance
Operation management get affected by financial changes. Operation decision making
approach involves a significant investment and cost which affect directly to the available
choices.
Human resource
It is the another factor which affect operation management of PizzaHut. Employees
affects to quality and capacity of the workforce which is an affecting operational objectives.
Targets for productivity.
Marketing issues
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Marketing issues affect the decision making approach of operational management in
terms short term changes in demand impact on capacity utilisation, productivity etc.
External factors
External factors are the uncontrollable factors which affect the operation management
decision making approach of Pizza Hut. External environmental factors include short term and
long term goals. Such as economic environmental changes. Apart from that, it discovers the new
managing successful business growth. (Kerzner. and Kerzner, 2017)
Competitor’s efficiency flexibility
Quicker and more efficient or better quality competitors will place pressure on operations
to deliver at least comparable performance. Pizza hut has so many strong competitor which
affect its production and marketing decision, for instance pizza hut now offer customised
product, differentiate pricing policy, coupons, discounts to counter its competitor. Apart from
these market efforts pizza hut’s production also get changed. Pizza hut focus on cutting cost so
that it can give best price to its customers. To maintain production efficiency it use more
automation in production department, AI augmented machine to check production quality. TQM
and SIX SIGMA used by pizza hut so that it can efficiently manage its production department
and get success in competitor’s advantage.( Ning, 2015.)
Technological change
Technological changes are the changes that affect the operation management task which
affect the management goals. This factor affects the overall life cycle of products or services.
These technological changes help in improving operation management of Pizza hut. pizza hut
now adopt almost every technological update which is required to sustain its market share like it
use RFID for logistic and warehousing, CRM for customer relation management, MIS and cloud
data storage facilitates pizza hut to manage its global market presence, pizza hut manage its
human capital with latest software which keep eyes on performance of individual
employee(Christopher, 2016)
Environmental factor
Natural disaster, climate and geographical condition can affect operational management of pizza
hut. For instance natural disasters like earthquake, hurricanes, landslides, and flood affect the
raw material supply and product delivery of pizza hut. Landform comprising elevation, slope,
orientation, affect the logistic. Pizza hut changed its packaging practice from traditional to
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environmental friendly packaging. Waste management of pizza hut include sanitary landfill,
incineration and composting.
Infrastructure-
Infrastructure facility like availability of public transportation, water supply, connectivity,
road, building, telecommunication affect the production unit establishment and store location
decision of Pizza hut. For instance company has pizza hut store are opened in residential area to
reduce the product delivery cost(Oreggioni and et.al., 2017)
Legal factor-
Food standard agency makes rule and regulations regarding food service industry. It is
responsible to protect public health and consumer interest regarding food. Pizza hut has to make
its product according to these rules and regulation i.e. labelling on food package, use glass bottle
for dairy product, maintain hygiene in food production process, and slaughter guidance. Every
food establishment has to take licence from FSA, it also assist the food bunnies in hazard
analysis and transportation, warehousing and supply chain standard for food business.
Economic condition-
Economic condition affects both pizza hut and its customer. In inflationary phase of
economy customer demand is influenced by decreased purchasing power of customers. Increased
interest rate raises the borrowing cost for market expansion plan. Pizza hut has to lower its
market expenses and other expense of production so that cost of product is easily accepted by
customer and customer will not decrease their demand. Employment rate , labour rate, education
rate are directly affect the operation management of pizza hut.( Jiménez-Jiménez. and et.al.,
2015)
Customer choice –
Pizza hut take care for its customer’s taste, emotion, physical and psychological well
being. Pizza hut change its food ingredients, packaging and store decoration according to its
customer preferences.
Social factor-
Social factor affects customer’s attitude and lifestyle. UK faces obesity, diabetics and
lifestyle deceases issue, so pizza hut also make required changes like now it organic pizza, low
fat pizza and sugar less, low cheese pizza. Health consciousness, buying habit, attitude of
customer for saving, quality acceptance, age distribution, and religion and belief affect pizza
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hut’s marketing efforts. Pizza hut offers both veg and non veg pizza according to social
class(Bryce, Flintsch. and Hall, 2014.)
Bargain power of stakeholders-
Stakeholder of pizza hut comprises supplier, customers, government, lenders, employees
and society. Strong braining power of these stakeholder affects pizza hurt internal bunnies for
instance when lender and share holder demand high profit, pizza hut has to make more effort to
increase sale and market share, although supplier is less powerful in case of pizza hut because
pizza hut so many supplier for its raw material. Bargain power of customer is so high because
there are so many brand offer same product and service which is given by pizza hut so , company
try to retain and maintain its brand loyalty among customer by giving them reasonable and high
quality product(Lai, Lin. and Lin, 2015)
Government policy-
Government policy reading food process, ingredients, package labelling rules ,customer
health and softy law, labour low, change in interest rate , bank rate, environmental policies, ease
of doing efforts affect pizza hut. Pizza hut production and marketing also get directly affect by
government policies.
CONCLUSION
From the above study it has been summarized that there are many management theories
and out of those three are explained above, different types of leaders are there and it depends
upon the situation what kind of leader is required like in an organization like pizza hut
transformational leadership is useful, there are both hard and soft management skills and both of
them are useful in their particular areas, we can also conclude that different situation affects the
type of leadership and management,.
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Park, E. A., Chae, I. S. and Jo, M. N., 2017. Importance–Performance Analysis (IPA) of
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