This document discusses the difference between leaders and managers, the roles of leaders and functions of managers in different situations, various theories of leadership, key approaches to operation management, and the role of leaders and managers in ASDA. It also covers the importance and value of operation management.
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Contents INTRODUCTION...........................................................................................................................2 LO 1.................................................................................................................................................3 P 1 Difference between Leaders and Managers..........................................................................3 LO 2.................................................................................................................................................4 P2 Roles of leaders and functions of manager applied in different situations.............................4 P3 Different theories of leadership along with strengths and weaknesses..................................6 LO 3.................................................................................................................................................7 P 4 Key approaches to operation management and role of the leaders and managers................7 P 5 Importance and value of operation management...................................................................8 LO 4...............................................................................................................................................11 P 6 PESTLE Analysis of ASDA-..............................................................................................11 CONCLUSION............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Operations managementis the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. It involvesplanning, organizing and directingday to day tasks in order to achieve daily tasks.It is responsible forthe maintenance and management of the organization of daily goals. ASDA Stores Ltd trading as ASDA, is a British supermarket retailer, headquartered in Leeds, West Yorkshire. The company was founded in 1949 when the supermarket owning Asquith family merged with the Associated Dairies company of Yorkshire. Besides its core supermarkets, the company also offers a number of other services, includingfinancial servicesand amobile phoneproviderthatusestheexistingEEnetwork.Thisreportcoversquestionssuchas Difference between Leaders and Managers, rolesof leaders and functions of manager applied in different situations,Different theories of leadership along with strengths and weaknesses, Key approaches to operation management and role of the leaders and managers, PESTLE Analysis of ASDA, importance of operation management. LO 1 P 1 Difference between Leaders and Managers BasisLeadershipManagement DefinitionLeadership is concerned with a skill which helps to motivate people so that they can get the work done and achieve the goal. It influences other people to follow the direction given by them.They also play a role to prepare others and inspire them. By effective communication they share Management is the function which helps to maintain the balance and coordination in the company so that they can easily achieve their desired objectives.They are the in charge of some operations assigned by the company. They control the factors of risk which are involved in the
their ideas and by their set of skills they make other people follow their direction. assigned project to them. So that the company can easily and risk free attain their goals. RiskASDA follows a leadership theory which derives them to never give up and keep on trying out new things even if they don’t get success because they know with their experience that sometimes it is possible that their outcome won’t be successful that does not mean they will give up. They will keep on trying so that they can achieve success for the company. Management of ASDA have a job to analyze the risk which is involved in any situationand figure out a way to minimize the risk. So that whatever moves the leaders of the company take will increase the chances of getting successful results. Management controls the problem instead of embracing them and creating a mess for the company. Relationships and structure Leadership theory helps to follow the instructions and vision so that the company can maintain the relationship with their clients. They also spend their most of the time with them so that they can earn their trust and work according to their vision in order to deliver them their expected outcome. Management of the company make sure to make a structure so strong that they can achieve their goals. They analyze all of the possibilities so that they can attain the expected outcomes. They enable a proper coordination with the individuals in order to achieve the objectives of the company. AuthorityLeadership has the authority to take major decisions for the company. They are considers to be as transparent and authentic. (Huq, Chowdhury and Klassen, 2016) Management of the company have to follow the instructions and directions which have been instructed by the leadership theories.They are not allowed to take any major decisions on behalf of the leaders for the company though they have some authority to take decisions which are
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for the lower lever of management such as appointing change, hiring or firing employees, look out for professionalism in the company etc. Vision and GoalsLeadership helps in bringing change as they work on building a vision for the companyand inspire the employees to convert that vision into reality. They have the power to think beyond the level of employees. They trust on the teams which are performing on a higher level for the company as they are the ones who help the company achieve their goals. Management of the company works according to the vision of the leadership theoryand on the basis of it they set the goals of the company. They control the factors or situation that will affect the vision, profitability and productivity for the company. (Dehran, Agrawal and Midha, 2018) Management by Objectives- It is a model of strategic management which helps ASDA to improve their performance by aiming clearly on the objectives and it is mutually consented by both employees and the management. Behavioural Theory- It helps the company to understand the behaviour of humans by analysing the problems in the situation or in the environment of individual. Company must be aware of the experience of the employees. Classical Management Theory- This theory is based on the values and beliefs that workers only have needs which are economic and physical. This theory is not concerned with the satisfaction of the job that the employees are getting by the company instead it focuses on aspects such as maximizing profit, labour, taking decisions. Functions of Management- Planning-
It is done to analyse the outcome of future and taking the decisions in advance so that they can achieve success.. This aspect is solely concerned with what to do, when to do and how to do. Organizing- This aspect of management is concerned with bringing together all the resources such as financial, physical and human resources. Controlling- This aspect helps ASDA to check that if or not the company is making progress so that they can achieve the objectives. Directing- This method includes elements such as motivation, leadership, communication and supervision. Contingency Theory This theory is an organizational theory which ensures the company that for them there is no any other option or best way available to lead or to take decisions. Internal and external situation varies the course of action as they are dependent on them. Transformational and transactional leadership- In this theory the leader of the company works with teams in order to identify the change which is needed to improvise. It helps in formulating a vision to so that they can make the required changes. Transactional leadership on the other hand states that leaders of the company promote their team by punishments and rewards both. This theory is used for short term motivation. Action Centred Leadership- This theory includes three elements of work that is developing the individuals, achieving the task and developing individuals. It is mutually dependent and the prime focus of this theory is those 3 elements. Hard and Soft Leadership- Hard leadership is consist of threats, negative motivation and fear it is a task oriented theory whereas Soft leadership is consist of character, communication, charisma, persuasion, courage and compassion. It is a people oriented theory.
LO 2 P2 Roles of leaders and functions of manager applied in different situations Leaders and managers both plays an important role in an organization. Manager and leaders of ASDA have some abilities to use their leading and managing styles as per the situation. ASDA is a British supermarket retailer and provide several products and services. There are several situations occur in its workplace which are being managed by leadership and management styles. Some situations in which leaders and manager plays a vital role are described as follows: Labour turnover:Labour turnover is the main problem and common situation that can occur in any type of industry and organization. But it needs to be solved in an effective and quick manner for taking competitive advantages (Reiche and et.al., 2017). Increased labour turnover can create several problems for ASDA like decreased brand image, delivering of poor quality to customers etc. In this situation, leaders and manager adopt their best style which can solve this problem in an efficient manner. In this situation, leader tries to identify the main problem of labour turnover and after identify the problem it tries to fit its style. Leaders motivate employees by providing them guidance and support them in their task. When employees get proper guidance then it decreases chances of errors and mistakes which increase their morale and confidence level. On the other hand, manager in this situation, provides rewards and benefits to employees. Rewards is called the best way of motivating employees. Different employees have different types of needs and when they feel that their needs are being satisfied then they are more likely to live in an organization. Financial and non-financial benefits is the best way of reducing labour turnover (Rothman and Melwani, 2017). Conflicts among employees:Conflicts among employees is other main situation that can occur in an organization. There are several reasons of conflicts such as lack of understanding, workplace discrimination, communication problems etc. In this situation, leaders allocate work in a team to employees. The main aim of adopting this method is to improve relationship of employees. When employees work in a group then they interact with each other and shares their feelings and skills. It improves engagement and solve the problem of conflicts. Whereas, manager of ASDA implement open door policy with the main aim of making all employees comfortable and creating a friendly working environment. When employees feel
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that there is someone who listen and give attention to their queries then they feel valued and respected. They try to help the company in accomplishing their goals and help each other. Poor productivity:Poor productivity is the main problem which can create several barriers in the path of the success of ASDA. In this situation, leader provides effective training and development opportunity to all employees. The main aim of training is to increase skills and knowledge of employees. Increased skills help employees in performer activities efficiently which increase their and company's productivity. Managers in this situation focus on developing approaches that can help them in improving quality of products. Some approaches in which manager invest are: total quality management and lean manufacturing. Both approaches reduces wastes and improve production process (Hassan, 2018). So, from the above it can be said that, leadership and managers plays effective role in different situations that occur at workplace. P3 Different theories of leadership along with strengths and weaknesses Leadership theories also plays an important role as it allows leaders to perform their roles in an efficient manner as per the situation. Different leadership theories work as a guideline and a framework for the company. Some leadership theories are described as below: Situational leadership:Situational leaders are those who adopts their style of leading like autocratic, democratic, transformational as per the workplace situations. He/she adjusts his/her style and try to make fit in the situation (Meier, 2016). There are several strengths and weaknesses of this style such as: Strengths and weaknesses:The main characteristic of situational leadership is this type of leaders understand needs of followers, tries to achieve trust of followers and have critical thinking skills. On the other hand, it does not focus on long term needs as only focus on immediate needs and in task oriented environment it can not be beneficial. System:It is an interdisciplinary theory about the nature of the complex system. According to this theory, leaders try to make an environment and a system where different departments and level of employees can work together. The main aim of this theory and leader is to improve relationship of employees and increase organizational productivity.
Strengths and weaknesses:The main advantage of this theory is it makes all employees able to adapt changes and also focus on accomplishing individuals as well as company's overall goals. Whereas, it has some limitations as it is not a practical theory and sometimes lead ineffective decision because it takes time to make this type of system. It is not suitable for small organizations and does not define inter dependence nature. Contingency:This theory of leadership states that leader's effectiveness is contingent or depends upon his ability to match leadership style with the situation. It also states that there is no particular theory that can be fit in all type of situations as leaders have to make their styles fit in situations. An effective and contingent leaders is one who styles fit with workplace situations. It also believes that the success of a leader does not depend only on his abilities as his success is depends on his roles. Strengths and weaknesses:The main feature of this theory is it is predictive in the nature and give more attention on combination of styles and situations. It helps to manager in making decision-making process more effective. On the other hand, it is complex and time-consuming approach and is reactive in the nature. There is a lack of literature by which many organizations do not prefer to use this (Oreg and Berson, 2015). So, from the above described theories of leadership, it can be said that different leadership approaches and styles can help ASDA in accomplishing its goals by adopting the best style as per the situation of its workplace. LO 3 P 4 Key approaches to operation management and role of the leaders and managers Six Sigma- This technique consist of set of tools so that company can improve their process. This method was introduced by an engineer who was American named Bill Smith while he was working in Motorola. This strategy helps ASDA to improve their quality of the output. It helps the company to figure out the cause of defects so that they can remove them by minimizing the variability in the process of manufacturing. It is based on statistical approach with a set of methods for managing the quality. Company uses a sequence of step which have some value
according to the target they have set. For instance reducing pollution for which ASDA has already worked or reducing the cost, ASDA reduce the cost and pass it on to their consumers so that they can satisfy them and increase their revenues. Apart from this Six Sigma also helps the company to focus on the aspects such as attaining measurable and financial returns from the output they have produced. It helps the company to emphasize on management in a passionate manner and support the strategies of leaders. With the help of this approach company can clearly make decisions as it keeps a checks on the strategies and evaluate them on a statistical approach instead of making an false assumption which is essentially beneficial for the company. (Wu, 2016) Lean Manufacturing- This method helps ASDA to minimize the waste at the time of manufacturing with the effect of taking consideration of the factor that does not let affect the productivity of the company. This method states that in order to reduce the waste company must focus on factors such as overburden on the labor or not taking the right measures in handling the work load of the company. Company has to work according to the perspective of the customers in order to satisfy them. This method states that company must add those things which adds value and reduce everything else. Most parts of this process was derived by the Production System of Toyota and because of their success. This has taken the attention of companies on this method. (Prevot and et.al.,2017.) Queuing Theory- This theory is based on a mathematical approach which is the study of waiting in lines. This model helps the company to predict the length and estimated waiting time of the line. Most of the time this theory is considered as research of operations of the branch. The reason behind this is that results are usually used when decisions of the business requires a service. With the help of this model ASDA company connects the queues which are single to a network that is routed. This is done so that company can achieve equilibrium and distribution in the network but sometimes it is fundamental. Company has to understand the perception of the customers. Some of them don’t visit the place if the line is too long. Some of them keep on switching between the lines and some of them leave the line when they run out of patience. ASDA needs to think of
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these factors because at the time of sales there is rush and lot of people give up. Company has to address these issues so that they can focus on serving more and more customers. (Avella, 2017) P 5 Importance and value of operation management It helps ASDA to achieve their goals and objectives. It helps in improving the productivity of employees. If the company is successful in it then it will improve the goodwill in the market and recognition of the brand. The manager will learn how to utilize the resources in a optimal manner. Apart from this it will also help in motivating the employees of the company. (Chirumalla, 2018) There are some approaches that the company needs to keep in mind- Total Quality Management and its principles- This approach covers the aspect of whole organization with the values which are core and putting the focus on continuously improving the quality of products and services so that ASDA can meet the expectations of the customers. This approach states that everyone in the organization plays a role irrespective of their level which means from top to lower level of management all of them are involved in meeting the expectations of the customers by improving the quality.(Radnor and et.al.,2015) Principles- Producing Quality Work- It means that company takes up the measures and ensures that changes in the process must work every time. ASDA train their employees on a continuous basis so that they can improve their skills. Company also evaluates the products which are the most in trend with the customers. This helps them to figure out which stock is needed to be maintained more. With the help of IT department company checks that whether their clients are buying their products online or just browsing the page. They also help the company to speed up and improve the content of their website. (Moreira and Tjahjono, 2016)
Focusing on the Customer- This stage is involved with making the products and the services in a manner specifically to satisfy the needs of the customer. Company needs to make the quality, the attributes, their functions according to the perception of the customers. Marketing department of ASDA spreads the word out to the prospective and potential clients. This department of ASDA uses various tools such as texting, e-mail and social media. If they observe that they are not gaining the attention of the people on retail as well as the online platform then the marketing department and IT department will coordinate and communicate with the department of research and development to make appropriate changes. (Song and Parola, 2015) Strategic Approach to Improvement- According to the needs of the customer ASDA ensures the quality and service of the product. It involves even the raw materials that the suppliers provide must be of good quality so that they can extract the products with good quality. The department of purchasing monitors all the reviews from the customers from both the platforms and compare them with the past records so that they can analyze the improvement. (Kumar Mangla, Bhattacharya and Luthra, 2018) Improving Continuously- The company keeps an continuous eye and monitor all the aspects on a regular basis so that they can figure out the ways which are efficient and effective for improving the quality of the product. ASDA has assigned this job to their HR department to check that if or not there employees are skilled or qualified. If they are skilled then company can easily maintain their operations and make the improvements side by side. (Joglekar, Davies and Anderson, 2016) Encouraging Respect and Teamwork Mutually- It is necessary for ASDA to follow this principle because all the levels of management from below to top are involved in the success of the company. Just in Time-
By the help of this strategy ASDA increase their efficiency and reduce the waste by aligning the raw materials with the process of production directly. It also helps the company to reduce the cost of inventory. But in order to use it successfully producers of the company need to forecast the accurate demand. This model also states that company must maintain enough stock when the demand is on the level of rise so that it can absorb the demand of market. If the machines of the company is facing constant breakdown and if they don’t have the suppliers on which they can rely on then Just in time won’t be successful. In order to make it successful company needs to have strong production and skilled workers. Positive aspect of this model is that it reduces the production which makes the product flow quickly from manufacturer to customer. It cuts down the money which is spent on raw materials as they know the actual figures to make the product. It also minimize the cost by minimizing the need of warehousing. Drawback of this model is not all suppliers can provide the materials at a short notice. They asks for prior notice. This in result will delay the order. Kaizen- It involves all the factors that focus on continuously improving the activities of the business. It involves people from above to below such as CEO to a worker. This method is applied by many organizations such as healthcare, banking, government etc. it was started by Toyota as Toyota way and since then it has gained recognition. This model improves the flow of whole organization. It will change some of the methods of working and processes but ASDA will get benefits from it. This model states that company must encourage and ensure that all the employees participate in such activities. If it is done correctly then it will eliminate the factor of hard work and teach people how to work with scientific methods which will ultimately reduce waste and humanize the whole environment of ASDA and increase the productivity of the company. (Toffel and Toktay, 2016) LO 4 P 6 PESTLE Analysis of ASDA-
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Political Factors- These factors are concerned with legislation, consumer rights, taxes etc. ASDA is facing the impact of regulations and directives which are taken by the Economic Union as after Brexit many companies are facing the same issues of unemployment and taxes. Other than that issues such as war and instability also affect the factor of making decisions. Organizations has to keep an eye on these factors on a daily basis. On the other hand company is getting some benefits because of the stability in the environment of UK. Economic Factors- These factors are concerned with level of pay, cost of credit, demand and supply of labor, pressure due to the competition etc. Company needs to address these factors as it affects the pricing strategy of the company. It is because of this reason and their pricing strategy company held their game at the time of 2008 global recession. People could not afford to buy costly products from other companies so they had no option other than to buy at ASDA. This also increased the revenues of the company. (Ab Wahab and et.al., 2017) Social Factors- ASDA also deals in food products and changes in trends can affect the demand for those products. For instance in UK the no. is in increasing for the people who are retired and they are willing to work for an addition to their income. That is why company has taken a decision to recruit senior citizens. They have made an impact on both of its products line that is food and non food products as their business is on the level of rise. Technological Factors- These are those factors which has made it easy for the company to maintain their operations. These factors have opened up a platform for the company to sell their products online. They even take the help of IT department so that they can analyze the actual outcome and performance of individual stores. These factors have increased the business of the company significantly. Company has also made their website available online for the consumers so that they can buy and share their feedback. These factors help the company to keep up their pricing strategy as they help in reducing the overall cost and increasing the aspect of innovation.
Environmental Factors- ASDA is supporting these type of factors which will preserve the environment. They have worked on their stores so that they reduce the emissions of the carbon. Now there stores are considered as eco friendly as they have been successful in reduction of carbon up to 50 percent which makes their stores more energy efficient as compared to other stores. Above that the company is even working with their suppliers so that they can make changes in the process of manufacturing which will also result in reduction of carbon. It is necessary for them to work on these issues so that they can maintain their reputation in the market. Legal Factors- There are planning permissions regulations in UK. ASDA has made sure of it all of their planning aspects comply with the legal factors of the country. This analysis must be considered by the company before expansion such as opening up of a new store. Company is facing some issues that they are dominating the retailers who are operating on a small level. That is why it is necessary for them to follow the legal aspects otherwise they won’t be allowed to serve in the country. (Papachristos and et.al.,2018) CONCLUSION From the above studies it has been concluded that ASDA needs to address many factors to improve their quality and increase their revenue. This can only happen if they increase the customer base. For that company needs to change their way of working and some of their process. ASDA has many competitors in the market but one of the biggest is Tesco. Tesco has been the leader in the market for over 10 years. For acquiring their position ASDA needs to beat them by figuring out the right approaches which are also highlighted in this report such as Just in time, Kaizen and total quality management if they successfully implement this and analyze the external factors. They can control or minimize the risk which will increase their profitability.
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