Importance of Effective Management in Organisations

This assignment delves into the crucial role of effective management within any organisation, facilitating the accomplishment of goals within stipulated time durations. By analysing internal and external factors impacting decision-making, it aims to provide a comprehensive understanding of the importance of proper strategies in operations management.

Management
&
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Compare different roles and characteristics of a leader and a manager............................1
Task 2...............................................................................................................................................4
P2 Role of a leader and function of a manager in different situational contexts....................4
P3 Situational leadership, System leadership and contingency..............................................6
Task 3...............................................................................................................................................8
P4 Key approaches to operations management and role of leaders and managers in Toyota.8
P5 Importance and value of operations management in achieving Toyota's objectives......10
Task 4.............................................................................................................................................12
P6 Factors within business environment that have impact on operational management and
decision-making by Leaders and managers of Toyota.........................................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operations management refers to area of management which deals with controlling and
designing process of production and redesigning operations of services and goods. It includes
utilization of resources like technology, equipments, materials and staff (Alderton and Saieva,
2013). It involves planning, organisation and supervision of processes to gain high profitability.
Toyota motor corporation is Japanese multinational automotive manufacturer. It's headquarter is
in Toyota City, Aichi, Japan. It provides automobiles, commercial and luxury vehicles and
engines. This report includes role and characteristics of leader and manager in different
situational contexts. Apart from this, it also includes situational, system leadership and
contingency approach. Approaches of operation management, their importance and impact on
operational management.
Task 1
P1 Compare different roles and characteristics of a leader and a manager.
Toyota is a Japanese organisation which is largest company by revenue and market
capitalization. It is market leader in sales of hybrid electric vehicle and it encourages mass
market adoption of hybrid vehicles across globe. It has employed its organisational structure for
supporting strategic directions and business goals. Toyota's management structure has different
characteristics like global hierarchy, geographic division and product based division. This leads
them to maximize their efficiency and capacity utilization.
Leader is a person who commands and leads a group or organisation. Leader influences
group of people for achieving a specific goal. Leader is a person who unite certain group of
people and govern them without forcing them. Within Toyota leader is passionate about their
duties and for accomplishment of organisational goals.
Role of Leader:
1. Leader creates a clear vision for its followers. Within Toyota, leader is responsible for
influencing followers or employees so that they can understand and accept future state of
organisation.
2. Within Toyota, leader motivates its employees and try to find out wants and requirements
of employees and appreciate them when they perform out of box.
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3. Leader guides their employees and provides them with effective tools which are required
by them to do their responsibility effectively (Brown and Bessant, 2013).
4. Leader of Toyota creates strategies through which they can achieve results consistently
with help of their followers.
Characteristics of Leader:
1. Leader of Toyota is influential. Leader is clear about what is to be done so that goal of
organisation can be increased effectively and efficiently.
2. They generate new ideas and formulate strategies to implement those ideas. Apart from
this leader have strong skills to inspire their employees.
3. Leader of Toyota have strong convincing power by which they speak to others and listen
their detractors.
Manager is person who is responsible for administering or controlling group of staff or
an organisation. Within Toyota, manager control different departments and give guidance to
people who work under them.
Role of Manager:
1. Manager of Toyota performs Interpersonal role which includes figurehead (signing legal
documents, welcome official visitors, etc.), act as leader (provides direction to
subordinates), acts as liaison (communicates with external and internal contacts) (Brown
and et. al, 2013).
2. Informational role is performed by manager of Toyota. They collect information from
other organisations and give that information to their subordinates. This information
collected by manager is based on facts and this can lead to growth.
3. Decisional role includes negotiator, resource allocator, disturbance handler and
entrepreneur.
Characteristics of Manager:
1. Manager of Toyota has strong communication skills by which they can communicate
with employees. Apart from this they can listen to their employees and customers.
2. Strategies are built by manager. They know what is needed to be done and when it is to
be done. This helps Toyota to enhance their productivity.
3. Manager has strong problem solving ability. They can identify problem and formulate
solution for the same.
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Comparison between Leader and manager:
Basis Leader Manager
Meaning Person who influences subordinates
for achievement of specific goal
Manages organisation and is
responsible for formulating plans,
directions , coordination and control
activities performed (Chiarini and
Vagnoni, 2015).
Characteristics Leader has qualities like motivator,
morale developer and influencer.
Manager has qualities like time
management, delegating authority,
managing activities and many more.
Roles and
Responsibilities
Vision is created by leader in Toyota
and influence them to work hard for
achieving the vision.
Manager of Toyota makes decision and
are known for time management skills.
This helps in achieving goals in
stipulated time duration.
Working Policies are implemented by Leaders
but manager formulates them
(Alderton and Saieva, 2013).
Manager of Toyota builds different
policies in respect to activities which
are conducted within work premises.
Approach and
attributes
Gives direction to subordinates and
has foresightedness.
Formulates or design plans and its
attribute is mind.
Difference between management and leadership
Basis Management Leadership
Meaning They comprises of controlling and
directing group of people or entities
Ability of an individual to influence
and motivate others.
Approach to tasks Tends to solve problems and be
rational. They focus on structures,
goals and availability of resources.
They are mercurial with enhanced
charisma. They takes risk and have
high level of imagination.
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Task 2
P2 Role of a leader and function of a manager in different situational contexts.
Within any organisation, manager and leader plays a vital role to attain growth and
profitability. Leader and manager of Toyota have different role and function in respect to
situations within organisation.
Resolution of conflicts
Within organisation conflicts can arise at any moment due to miscommunication, beliefs,
working environment, cultural difference and many more. Leader and manager of Toyota have
different role and functions to perform in this situation (Gimenez, Sierra, and Rodon, 2012).
Management of Toyota can set targets for each employee as per their designation, skills they
acquire and their responsibilities. By dividing roles and responsibilities of all employees
conflicts can be managed. Leader define and communicate vision and mission of Toyota.
Conflict resolution completely depends on situation at particular moment Leader must use their
expertise and ability to control their subordinates or employees. Leader of Toyota tries to find
out root cause of problem, apart from this they encourage subordinates to listen and forgive
others when conflict is over. Leader, is a person who leads employees, employees will listen to
leader and act as per that. This can help to resolve conflicts.
Manager investigates entire matter, listen to employees and leader and to understand
complete issue ask certain questions. To bring peaceful resolution manager of Toyota finds out
solution with collaborating with employees. Managers maintain team harmony and act as
representatives of organisational values. To manage all the processes for effective growth of
organisation, management plays crucial role. For smooth business activities, concept of
resolution of conflicts can be included in function of management. In this case leader can follow
autocratic style of leadership if situation is not controlled and manager can use this style to fire
employees who are disturbing working environment of Toyota. In this theory there is little input
from employees and management takes all decisions. In the situation of conflicts the Toyota has
applied situational approach which is related to modern management theory. This approach
based on different situation. In an organisation each theory can not related to every situation so
there is applied contingency/situational approach for resolve of conflicts. In this approach a
leader can follow all guideline which is related to this theory. It will provide help to solve
conflicts which is origin between employer, customer and staff members.
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Timely delivering services:
Leader and manager work in coordination to ensure effective working of organisation
(Griffin, 2013). Role of leader within Toyota is to motivate employees so that requirements of
customers can be fulfilled. Function of manager is top formulate plan related to production and
leader will ensure that these plans are implemented for timely delivery of services and products.
Consider an example in respect to this context like production or manufacturing
department of Toyota is not able to complete their work due to absence of efficient raw
materials. In this case manager will talk with different suppliers so that they can get raw
materials so that they can complete their task effectively. At this point leader will make sure that
they motivate their employees effectively so that they can work hard to manufacture desired
product within stipulated time. Apart from this leader will also engage them and influence them
to work extra so that organisational objective can be achieved effectively.
In this case democratic leadership can be followed by management so that they can take
suggestions from employees and implement those by coming into mutual consent depending on
idea which is given by employees. If idea generated by employees is effective then management
can think about that and implement this. For this situation there is applied Elton Mayo theory and
according to this theory all works are divided according to their skills. It will help to done each
task on time and provide delivering services. A leader can divide work in everyone according to
their efficiency and skills so it will helpful to done work according to requirements.
Planning:
Fundamental management function of any organisation is planning. It lays down different
organisational objectives and design actions accordingly. It will help Toyota to accomplish these
objectives via proper planning. Strategies are built in such a way that they can handle
unpredictable situations. Manager and leader needs to follow their vision so that success can be
derived. Leader shares vision of organisation with employees and make them work as per that.
Manager administer that activities are carried out appropriately so that goals and objectives of
Toyota can be accomplished. Manager design policies according to requirement of Toyota and
customers. Leader ensure that these policies are clear to employees so that any kind of
misunderstanding related to objectives do not arise among employees.
In such situation management can opt for strategic leadership style. In this they develop
their strategies for all levels of audiences who want high performance in life and organisation.
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This will help organisation to deliver goods and services in terms of what is expected by
organisation and build products and services according to that.
For the solve situation of planing there is apply management by objectives because in this
management take all steps according to objectives and for getting results in productive way.
Management by objectives is the process of defining, specific objectives with in Toyota and it
can help to how to accomplish their objectives in effective way. For complete the process
manager has set all tasks according to objectives after that a ledger can guide to all employees
how to do they work according to planning for achieve optimal result. There is planning for any
new project in systematic way with the help of management by objectives. It is a big reason for
success.
From above it is clear that both leader and manager have different role in different
situations. For conflict resolution, timely delivery of services and planning leader has specific
role. Manager has different role in this context to ensure that high productivity and profitability
can be achieved.
P3 Situational leadership, System leadership and contingency.
Situational leadership
It is proposed by Kenneth Blanchard and Paul Hersey. This theory of leadership means
that manager or leader of organisation opt for style as per development level of followers or
employees they are trying to influence (Haksever and Render, 2013). Within Toyota, manager
and leader often change their styles depending on situation to meet needs of organisation. This is
an adaptive style of leadership.
Strengths:
1. It provides comfortable environment for employees. This creates a healthy working
environment within Toyota.
2. Different development phases are taken into account. Individual situations are viewed
within Toyota, goal is to evaluate competency level of each employee and boost their
motivation level as per that.
Weaknesses:
1. Focus is on short term goals or needs rather than long term goals. Overall objectives or
goals of organisation are not focused (Ham, Hitomi and Yoshida, 2012).
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2. Confusion can be created as approaches are shifted to different approach to meet
requirement of each employee.
System leadership
It refers to cooperative leadership in a network of employees at different places and at
different levels to create shared attempt and collaborate to make relevant change. This approach
enables leaders to make a condition in which every employee work productively to meet
organisational goal.
Strengths:
1. Clarity is provided about complex situations. Apart from this it helps to build and
develop innovative approach to different context.
2. If leaders of Toyota are able to delegate responsibilities to employees effectively then
productivity can be enhanced.
Weaknesses:
1. It is a time consuming process as employees need a consistent guidance related to
resources to perform their job (Harrison and Lock, 2017).
2. Invisible barriers like attitude, recurring problems, resistance, behaviour are some
examples which can have major impact on performance.
Contingency theory
This theory states that leader's effectiveness is dependent on way in which leadership
style matches situation (either internal or external situation). This theory states that there is no
best style of leadership. Leader of Toyota applies their style of leadership to act upon specific
situation.
Strengths:
1. Flexibility in structure of task. Different structural levels are required within different
types of task. Example can be considered like in Toyota manufacturing department needs
to acquire structuring of employees and are told how specific task can be completed (Hitt,
Xu and Carnes, 2016).
2. Leader of Toyota considers all possible factors which can affect specific situation.
Weaknesses:
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1. There is no definite solution to problem and apart from this it is costly and needs lot of
time. Theoretical foundation is not provided upon which management principles are
based.
2. All factors cannot be considered to reach to a definite conclusion due to lack of ability,
money or time and analysis of complete information is time consuming
From above it can be concluded that, management of Toyota can use situational leadership to
provide healthy working environment to their employees and this can also be used to evaluate
competence level of employee so that they can be motivated by leader to work up to their
potential. System leadership can be used by Toyota to create different situation and develop their
employees as per that so that in future if such kind of situations occur then they can easily
overcome. Apart from this management of organisation can use contingency approach when they
need flexibility in their tasks.
It is recommended that manager must make sure that which theory or approach must be used at
what moment of time. Leader must ensure that employees are working as per strategies of
organisation and they are effectively motivated so that they can meet organisational objectives.
In future perspective they must ensure that if their current strategies are not working effectively
then they need to use other strategies. An example can be considered in such condition like if
conflicts are arising between employees then despite of warning them for many times, they must
adopt autocratic style of leadership so that such kind of situations do not occur within
organisation in future.
Task 3
P4 Key approaches to operations management and role of leaders and managers in Toyota.
Operation management refers to administration of business practices to ensure maximum
efficiency within organisation so that profitability can be enhanced. Key operations of Toyota
are design of services and goods, quality management, process and capacity design, location
strategies, layout design and strategies, job design and human resources, inventory management
and supply chain management. Different key approaches of operation management (which are
mentioned above) followed by Toyota are mentioned below:
Total quality management
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TQM refers to different management practices within organisation to that organisation
meets or exceeds needs of customer's (Jacobs, Chase and Lummus, 2014). It focuses on controls
and measurement of constant improvement. Toyota focus on overall enhancement of quality and
performance within all functioning departments so that quality services and products can be
provided which can exceed expectations of customer.
Role of leader:
1. Effective utilization and involvement of entire work force to ensure that goals are met
within stipulated time duration.
2. To authorize performance measurement of processes within each department of Toyota
and remain involved and committed to provide long term organisational support.
Role of manager:
1. Manager of Toyota ensures that determined focus is on both external and internal
customers.
2. Manager needs to treat each supplier as business partner to ensure production process and
constant improvement (Lewis and Brown, 2012).
Just in time
It is defined as strategy to enhance efficiency and reduce waste by receiving goods when
they are required in production, thus reducing cost of inventory. It helps Toyota to trim down
storage space as goods are stored only when they are required, it reduces cost and wastage of
resources
Role of leader:
1. Leader ensures that goods which are ordered are effectively utilized in production process
rather than wasting them.
2. Leader of Toyota ensure that employees know their responsibilities and roles so that they
can work effectively in right direction.
Role of manager:
1. Manager ensures that resources or goods are ordered only when they are required, at right
moment of time.
2. Manager of Toyota analyse demands of resources and makes order as per requirements.
Apart from this, healthy relations are made with suppliers.
Six sigma
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It is set of tools and techniques for improvement of process. It is continuous improvement
methodology, data driven, statistical based and disciplined approach to eliminate defects in
services and products (Peng and Lai, 2012). This will lead operation management of Toyota to
gain high customer satisfaction.
Role of leader:
1. Training and resources are provided by leader to employees of Toyota so that they can
use resources in appropriate manner.
2. Leader communicate importance of six sigma to employees. Leader of Toyota also
recognise and support effective participation of employees.
Role of manager:
1. Manager includes this approach to save cost of Toyota. Apart from this manager also
monitors implementation of this approach within organisation.
2. Review and support is given to employees and top management so that they can work
more accurately (Ravindran, 2016).
P5 Importance and value of operations management in achieving Toyota's objectives.
Operation management refers to process of creation of services and goods. It is a function
of management which includes management of information, technology, equipment, people and
various resources which are required for manufacturing of services and goods. Within Toyota,
they control system of operations as it includes designing and enhancement of system.
Objectives of Toyota are: to provide enhanced customer satisfaction by providing them value for
money and quality, maintain market share and ethical approach to foster needs of customer's.
Some of functions of operation management within Toyota are mentioned below:
Control and distribution system
It is foremost factor within Toyota as this factor is responsible for controlling production
process within organisation. This also ensures that products are distributed properly so that
objectives of Toyota can be achieved. For enhancing efficiency of system, Management of
Toyota needs to adopt strong logistics infrastructure and control system. Resources must be used
properly and distributing them in calculative way so that resources are not wasted and are
distributed effectively within market. Focus of Toyota is to satisfy their organisational objective
by providing their customers with effective products. For this they have adopted different
strategies.
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Process design
Design refers to way in which production process is carried out within organisation. This
will help management of Toyota to design products as per customer's requirement (Schönsleben,
2016). This will help organisation to obtain high productivity by using least realizable resources.
Management of Toyota ensures that designing of products is done on basis of requirement of
their customers. For this they have analysed market in which they launch their products.
Transformation of resources into services and goods
In this demands of customer are analysed and raw materials are utilized to produce final
product in effective manner. This will help management of Toyota to manufacture quality
products with an aim for their potential customers. Efficiency can be enhanced by decreasing
excessive usage of resources to convert raw material into product, this will reduce cost of
organisation. Management of Toyota ensures that transformations are being carried out on
demand on customers, for this they keep in mind what is required by customers so that their
organisational objective can be fulfilled within time.
Capacity management
Capacity of production process is specified so that excess products are not produced, this
will develop enhanced pressure on production process as well as quality will be hampered.
Management of Toyota can enhance their capacity process by producing sufficient amount of
products their customers as per their demand. This will save excess cost of products. For meeting
their objective of meeting market share of Toyota in Yemini market, they need to make sure that
quality of their products is not hampered.
Scheduling
It helps management of Toyota in proper distribution and scheduling of jobs as per skills
of each employee, resources and time for completing specific task (Slack and Brandon-Jones,
2018). Framework is designed to effectively carry out task within specific time. Right product is
made available at right moment by time by following right process. Efficiency of this process
will help management of Toyota to obtain desired output within time and prioritize tasks as per
requirements and needs of organisation. To satisfy their customer proper scheduling of products
is required so that they are provided value for money.
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Task 4
P6 Factors within business environment that have impact on operational management and
decision-making by Leaders and managers of Toyota.
Organisation is affected by different factors they can be either internal or external which
will affect operations and decision-making. These factors affect business to great extent. For this
management of Toyota has formulated different approaches so that competitive edge can be
achieved. Apart from this profitability level of organisation can be enhanced and strong brand
image can be created.
Internal factors
Factors which affects organisation from inside. Different internal factors which affect
growth of Toyota are mentioned below:
1. Shareholders: They are owner of business. Managers of Toyota forms policies by which
they enhance their revenue and provide benefits to different shareholders. Manager will
take different decisions so that requirements or needs of customers can be fulfilled
(Subramanian and Ramanathan, 2012). If decisions taken by manager and leader are
supportive then employees will work up to their full extent, this lead to enhanced
profitability and growth.
2. Employees: Management of Toyota recruits employees via different mediums like
campus recruitment, interviews and many more. Candidates who are technically sound
and have wide range of skills related to mechanics are preferred so that their skills can be
utilized effectively within automobile industry. This will help Toyota to provide effective
services. Burden of leaders and managers can be reduced when skilled candidates are
employed and healthy work environment can be created.
External factors
Factors which influences from outside are referred to external factors. Some factors
which impact management of Toyota are mentioned below:
1. Technological factors: It is mandatory for an organisation to stay up-to-date with
technology, this will lead to enhanced productivity (Swarbrooke and Page, 2012). Toyota
is using latest technology in its equipment as per change in it. Working process of
managers and leaders will be changed as per advancement in technology. This will make
process of production easier and quicker.
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2. Economical factors: Changes in inflation rate, interest rate, exchange rate, etc. will have
impact on organisation. Business strategies must be formulated by management of
Toyota as per dynamic business environment. Manager and leader motivates and guide
employees so that these factors do not have adverse impact on organisation. An example
can be considered like if any change is made in interest rates then production will be
impacted. Managers and leaders need to formulate policies in such a way that such kind
of effects can be minimised.
3. Competitors: Organisation need to have flexible competitive environment by which they
can adopt new strategies and technologies. This will help Toyota to remain productive for
longer period of time (Peng and Lai, 2012). High efficiency can be maintained by which
in operations performed within Toyota can be achieved within stipulated time duration
and with less wastage of resources. This will lead them to gain high competitive vantage.
Corporate Social responsibility – It is described as a approach which provide
sustainable development by providing economic, social and environmental benefits. The
leadership and management in an organization have play important role according to corporate
social responsibility. The Toyota must follow their short terms goals because it is beneficial to
survive company in long term perspective. Hence, a company needs to make minor adjustments
and compromises for the practice of corporate social responsibility. Toyota must have large part
of CSR policy for dedicated towards the betterment of local community
Business ethics – In order to follow the Corporate social responsibility in Toyota the
company must practice of business ethics for assure about the business activities related to
company. These activities are not harmful for the stakeholders as well as for business
environment. Business ethics described as the business which is adopt ethics to achieve their
objectives and provide benefits to their stakeholder with business activities. The leader and
manager of Toyota must proper follow the ethics of a business to increase productivity and
promote the business for the welfare of stakeholders. The leader and the management assure
about the policies of business ethics towards to followed all hierarchical level.
Stakeholders – It is defined as individuals and bodies who stake in the business and their
activities affected by the business activities. The stake holder of the company are mainly the
customers, employees, suppliers, government and local community of an organization. The
management and leadership of a company have to fulfil all needs and demands of stakeholder
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and also consider about their welfare. Stake holder can play important role in a company and
they are invested in Toyota for increase capital so as a responsibility manager and a leader focus
on their expectations and try to fulfil this.
Operational efficiencies can be improved by effectively using their internal resources
they are shareholders and employees. If these resources are not used effectively then objectives
of organisation cannot be met. Apart form this they to be careful about external factors which
affect their business like economy, technology and political factors. They need to make sure that
latest technologies are used in their products so that they do not lack behind in the market.
From above it can be concluded that Toyota is leading organisation who are satisfying
their customers as per their demands. For further enhancement management needs to do market
analysis so that they can be aware of current trends and what they want in future.. In future they
need to take care of political factors which can affect their organisation.
CONCLUSION
From above report, it can be concluded that operation management plays vital role in all
business aspects. Manger and leader have inevitable role in different functions of organisation.
Roles and functions of leaders and manager is discussed. Leadership theories are applied to
evaluate different functions and attributes possessed by leader. Operation management within
any organisation helps in accomplishment of goals within stipulated time duration. Objectives of
organisation can be achieved with high efficiency when operations are carried out with proper
strategies. Different factors, internal and external are analysed which impact decision making of
managers and leaders within organisation.
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REFERENCES
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