Importance of Operations Management in Achieving Business Objectives

This article explains the importance and value of operations management in achieving business objectives. It discusses key approaches to operations management and the role of leaders and managers in the process. The article is based on TESCO Plc, a multinational retail organization.

Unit 4 – Management
and Operations

Table of Contents
INTRODUCTION...........................................................................................................................................3
LO1..............................................................................................................................................................3
P1 Define and compare the different roles and characteristics of a leader and a manager.......................3
LO2..............................................................................................................................................................6
P2 Examine examples of how the role of a leader and the function of a manager apply in different
situational contexts..................................................................................................................................6
P3 Apply different theories and models of approach, including situational leadership, systems
leadership and contingency......................................................................................................................6
LO3..............................................................................................................................................................8
P4 Explain the key approaches to operations management and the role that leaders and managers play. 8
P5 Explain the importance and value of operations management in achieving business objectives........9
LO4............................................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational management and
decision-making by leaders and managers.............................................................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Management and operation have become the most significant area in any of the business
organization that includes the process of planning, organizing and supervising of all the activity
which are conducted within the business organization. This process is effective because it allows
to improve the profitability ratio of the company which is necessary for competing with the
rivalry firm. The report in this file will be based on TESCO Plc which is a retail sector
multinational organisation. The organisation is able to perform as per the requirement due to
which they are able to accomplish their goals easily.
Number of topics will be explained in the file which relates with roles and characteristics
of leader and manager who plays significant role in the entity. Their function along with different
types of theory will be discussed in number of situations. Approaches and business factors that
affect the business will be explained briefly in the file for better understanding of every concept
in the file.
LO1
P1 Define and compare the different roles and characteristics of a leader and a manager
Manager are the one who has the responsibility to manage each of the business activity
for the purpose of achieving the target of a company. During this process they have number of
responsibilities such as managing employees, hiring the skilled employees and making effective
plans and polices.
Roles of Managers
Recruit and manage staffs: In any of the entity, manager has the responsibility to
manage each of the activity in a systematic manner. In context of TESCO, manager has the role
to hire the employees as per the requirement of specific position through the process of interview
(Bromiley and Rau, 2016).
Training and developing staffs: It are essential that after hiring the employees, they
must be provided proper training so that they can fit themselves for the specific position in the
company. In terms of TESCO, the manager needs to ensure that they are able to conduct training

session on a regular basis for the purpose of obtaining the effective results. Training on regular
basis will help them to improve the performance of their employees.
Evaluate the organisation: Among several duty of any manager, evaluating the
organisation is the most important duty because it is the only way through which positive
decorum in the entity can be maintained. In order to evaluate the organisation, it will be
important for manager of TESCO to identify the performance of employees as it can certainly
allow them to obtain effective result.
Leader is the person in an entity who has the role to influence the group of people to
work effectively within the premises of a company so that required goals can be accomplished.
In any of the effective leader always helps to motive their employees so that they can perform
their duty as per the requirement of a company.
Roles of Leader
Representatives of the entity: In any of the organisation, leaders are the role model
where they need to conduct different seminars, conferences as well as meeting for representing
the company. Here, role of TESCO’s leader is to communicate with employees and represent
their points in front of the management for better result.
Friend, Philosopher and Guide: There is a huge responsibility upon leader as they
needs to act as a friend, determine about the mind of employees and guide according to the
requirement so that they can perform in desire manner (Fiorentino, 2016). In context of TESCO,
their leader must find out the solution of every problem of the leader and maintain healthy
decorum so that they can discuss their problem whenever it is needed.
Inspire & Motive: It is essential to understand that whenever any of the leader holds the
positive of leader in the entity, they should be able to motive their employees so that they
perform wisely. Talking about the organisation like TESCO, their leaders needs to make the
healthy communication environment because is the suitable to connect with any of the
employees so that they can be inspired. For motiving proper rewards in monetary terms should
be provided.
Characteristics of Leader

Communication: In any of the organisation, leader most possess the characteristics of
effective communication. It is among the most significant skills which can allow the organisation
to obtain effective result (Mateo, 2016). In TESCO, leaders have determined that communication
skills the most important skill because it certainly help them to decide whether organisation will
accomplish the goals or not. It is the skill which can be helpful for them in resolving number of
problems which are being faced by different people.
Decision-making capability: Leaders having the capability of making favourable
decision is always helpful for the organisation. If leader of TESCO does not hold this respective
capability that it can become difficult task for them to obtain the objectives which are pre-
planned.
Characteristics of Manager
Knowledge: In an organisation, manager has the huge responsibility which means that
they need to ensure that they have proper knowledge to fulfil the respective responsibility(Misra,
Ravinder and Peterson, 2016). Manager of TESCO having sufficient knowledge can be helpful
for making proper planning as per the requirement of situation. Also, proper plan and policies
can be made with the help of knowledge.
Experience: The position of manager has the number of duties which is to be performed.
It means that to hold the position, it is necessary to have proper experience so that suitable result
can be obtained. If a manager of TESCO has proper experience, they can take their decision
wisely and decide that to whom which type of work must be handed so that goals and target can
be accomplished within the specific time period.
Difference Between
Manager Leader
 In any of the entity, manager holders
higher position then leader as they
have the responsibility to manage
whole of the organisation.
 For the success of a company,
manager needs to have a quality of
 They don’t need to manage entire
organisation as their concern is only
related to employees.
 There is no requirement of making
any sort of plans and policies for the

planning and forming policies. entire organisation.
LO2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
Leaders and mangers has most important role to play in relation to an organization. As
they are most important part of an organization. Leaders have various roles to be played within
an organization that is they helps in setting of goals, organizing of work, providing initiation
upon particular action. Major role that is played by them is to motivate employees and improving
moral within organization. Manager also has effective role played within an organization that is
planning, organizing, controlling and staffing. Further they have been discussed in various
situation as follows:
Condition 1: Execution of new project: Under this situation organization like TESCO
has been facing lot of challenges in relation over duty related to project completion. The issue
face by them is related to coordination within team members and lack of proper planning. So, to
deal with such problem leaders is required to hold programs of training and development which
is going to increase coordination among its team members (Radnor and Bateman, 2016).
Planning can be improved with the help of dividing the tasks in sub task which makes proper
cycle developed that makes project completion possible in more effective manner.
Condition 2: Increasing employees’ turnover ratio: This is one of the most common
issues that is been faced by an organization. Under it performance as per organization
requirement is to be done. Issue faced by TESCO within it is related to performance of
employees and production capacity. This can be solved by leader’s of Tesco in a way that
motivation is been provided to employees through doing various activities which is for fun that
reduces stress and increases capability to perform. Then managers of Tesco should be enhancing
technological policies which make machines improvement possible and helps in attaining of
technical assistance through increasing production capacity. Also both leaders and managers can
discuss about methods for achieving targets in more effective manner.

P3 Apply different theories and models of approach, including situational leadership,
systems leadership and contingency.
In order to attain success within an organization like TESCO both management and
leadership plays most affective role in managing of various operations with processes through
which task is been accomplished. In relation to this certain theories in relation to Tesco has been
explained as follows:
Situational Leadership: This theory is mainly focused over achieving of organizational
goals and objectives as per situation that has taken place. Further such theory is mainly focused
over situations accruing within an organization like TESCO. Example in relation to this is Tesco
sells 350 units within 20 days of detergent powder in order to cover up urgent orders in bulk. So,
the manager is required to make employee work 1 hour extra to accomplish the task. The role of
leadership is to motivates the workers so that they can as per the requirement of corporation as a
result corporation can achieve its objectives (Enyinda, 2017).
System Leadership: In this system of leadership proper process is required to be
followed by an organization over requirements within an organization. Under it management
within corporation is require to develop strategy upon which employees work in more effective
manner. So, managers of TESCO has made there quality standards which is to be improved at
the time of producing final product. For this purpose TESCO’S leaders is required to makes
instruction given to employees over quality of products to be maintained. The mangers should
focus upon monitoring of products by attesting them with quality standards.
Contingency Leadership: This leadership states that any of the leader and manager
needs to make their decision as per the changes in situation that come across the organisation.
This can be understood through example that is due to transportation strike lack of resources
problem is been faced by TESCO. Under such situation mangers is required to purchase raw
materials from local market for completing urgent orders. Leaders is required to develop proper
patter through leadership which directly encourages employees to work as per organizations
desire (Omansky and Kanner, Autodesk Inc, 2017).

All of the above-mentioned leadership style is suitable for the organisation like TESCO
Plc because it will certainly provide them the way that how they are needed to perform any of the
task. But situational leadership can be helpful for dealing with any of the business activity.
LO3
P4 Explain the key approaches to operations management and the role that leaders and
managers play.
The business decision being taken by leader and manager has a huge importance for
future growth as well as success of a company. For the purpose of performing the work in more
efficient manner, there are some of the key approaches to operations management which leader
and manager should consider for effective result has been mentioned below:
Total Quality Management: It is one of the widely being used methods by any of the
manager within the entity as it helps them to raise the standard of quality of product and services
which is being delivered by the organisation. In context of TESCO, they can allow themselves to
enhance the customer satisfaction level which is quite important at the current moment. This will
simply allow to built the trust upon company which is quite important in current scenario for
accomplishing the goals (Ravinder and Kollikkathara, 2017). In this -particular method, leader
have also important role where they need to ensure that their subordinates are performing as per
the requirement of a company where they will work for delivering proper training to each of the
staffs.
Just in Time: It is the approach which is widely being used by the organisation for the
purpose of developing the relation with suppliers. Here, suppliers work for the company by
delivering them the raw material whenever there is a requirement. In case of TESCO, they will
be benefitted from this strategy because wastage can be reduced significantly and on the other
side efficiency increases automatically. Overall profitability of a company can be increased in a
very short time period.
Six Sigma- This is one of the modern techniques which is being used by most of the
organisation for the purpose of improving the working style of a company. In other words, it will
assist in brining improvement to the existing process and procedure which are being used by
organisation. If TESCO Plc, uses this respective technique then, there is higher probability for

them where they can easily reduce the percentage of wastage or defected item for their existing
product which are ready for sale (Slack and Brandon-Jones, 2018). The unnecessary expenses
can be reduced due to which favourable result can be obtained easily.
Above mentioned, all of the techniques and methods are effective for the company
because it can certainly allow them to prepare effective plans and policies which are necessary in
current working environment. This can certainly allow the leader and manager of TESCO to
attract more number of customers towards the organisation.
P5 Explain the importance and value of operations management in achieving business
objectives.
It is essential to understanding that performing any of the business activity is not an easy
task because there are lots of criteria which is needed to be fulfilled. In terms of operation
management, it is one of the sectors which can become crucial because it will certainly enhance
the performance of a company. Below, there is a detail discussion about operation management
value as well as importance.
 Converting raw material to finished goods: The first step in any of the operation
management is of conversion of raw material to finished goods with the help of available
resources. At the same time, it is also necessary for the manager and leader to ensure that
resources are being used effectively so that higher percentage of revenue can be
generated (Meredith and Shafer, 2019). In context of TESCO Plc, their management
needs to ensure about the requirement of product and services and according to that they
must be able to work for meeting out the requirement. This can certainly give them
additional advantage in reduction of waste material due to which higher revenue can be
generated.
 Ability to increase productivity: Operation management has the huge area which they
need to cover. It is said that whenever any of the entity have strong operation
management team then they can easily improve their productivity which is necessary in
accomplishing the goals and target. Productivity of TESCO can be improved only in the

circumstances where they are able to provide higher level of quality of product to their
customers.
 Waste Reduction: Effective operation management always provide the option of
reduction of waste material from the company with the help of Just in time approach.
Whenever TESCO will be able to do then they can easily see that profit ratio has
increased for them significantly.
LO4
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers.
In any of the organisation, business environment has a huge role in day to day affair of a
company because if its impact. The impact can be seen because of two factors and they are
internal and external factor. Further discussion on both of this factor has been mentioned below:
Internal Factors:
 Organisational Culture: It is one of the most important internal factors that has a huge
importance for leadership and management. It totally depends upon the manager and
leader of TESCO to decide that which types of culture they want to develop in the entity.
It means that if they will be able to treat each of the employee in fair manner then there is
higher opportunity that they can work in the favour of a company. Even they can be
helpful at the time of making decision. But, if in case leader and manager fails in this
respective area then huge problem may raise because negative impact can create issue in
performing business activity.
 Employee Support: In an organisation, employee plays the most important part so that
support from them matters a lot as it allows to perform any of task. As they are important
factor for the organisation, so it is necessary that leader and manager of TESCO to
support them by motivating them in each and every step (Reid and Sanders, 2019).
External Factors
 Customer Demand: Customer of the company plays the essential role in attaining the
goals of a company and by considering this particular factor, it is necessary for the
TESCO Plc, that they should be able to provide the product to their customer as per their

willingness and needs. It can become one of the factor through which huge advantage can
be taken from the market.
 Sustainability: If an organisation like TESCO is able to meet out the requirement of
customers then there is higher possibility that company can allow them to sustain within
the market which is quite important for accomplishing the goals and target.
CONCLUSION
From the discussion, it is quite clear that manager and leader of the company plays the
important role in performing any of the task through which goals can be accomplished. Theories
of leadership can guide management that how they need to perform in any of the situation. There
are different types of method and approaches such as six sigma’s, Just in time approach and
many more. It is equally important that leader should motive their employees so that they can
perform wisely within the organisation.

REFERENCES
Books & Journals
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Fiorentino, R., 2016. Operations strategy: a firm boundary-based perspective. Business Process
Management Journal.
Mateo, J. R. S. C., 2016. Management Science, Operations Research and Project Management:
Modelling, Evaluation, Scheduling, Monitoring. Routledge.
Misra, R. B., Ravinder, H. and Peterson, R. L., 2016. An integrated approach to the teaching of
operations management in a business school. Journal of Education for Business .91(4).
pp.236-242.
Radnor, Z. and Bateman, N., 2016. Debate: The development of a new discipline—public
service operations management. Public Money & Management .36(4). pp.246-248.
Enyinda, C., 2017. Modeling enterprise risk management in operations and supply chain: A
pharmaceutical firm context. Operations and Supply Chain management: An International
Journal .11(1). pp.1-12.
Omansky, A. H. and Kanner, J. L., Autodesk Inc, 2017. Systems and methods for construction
field management and operations with building information modeling. U.S. Patent
9,679,038.
Ravinder, H. and Kollikkathara, N., 2017. Project Management in Operations Management
Textbooks: Closing the Gap. Journal of the Academy of Business Education, 18.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Meredith, J. R. and Shafer, S. M., 2019. Operations and supply chain management for MBAs.
John Wiley & Sons.
Reid, R.D. and Sanders, N. R., 2019. Operations management: an integrated approach. John
Wiley & Sons.