Key Operational Management Approaches for Enhancing Organizational Value

This article discusses the key operational management approaches that managers and leaders can adopt to enhance organizational value and achieve objectives. It explores the importance of direction and motivation, improving moral and job satisfaction, planning and implementing, and managing projects.

Unit 4: Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1 (LO1 & LO2) .............................................................................................................3
1. Provide definition a of a manager and a leader, analysing their differences in roles and
functions with reference to different situations within the organization selected.......................3
2. Apply different theories and models of approach in leadership, including situational,
systems and contingency leadership. Appraise the different approaches within the given
environment assessing their strengths and weaknesses. ............................................................6
3. Critically evaluate different contemporary theories on management and leadership like
management by objectives, behavioural or contingencies theories in the given context............7
SECTION 2 (LO3 & LO4) .............................................................................................................9
1. An introduction to the key operation functions of the organisation you have chosen............9
2. Explain the key operational management approaches managers or leaders can adopt to
enhance the organizational value and achieve objectives. .........................................................9
3. Evaluate the role of leaders and managers through different approaches so as to achieve the
organizational objectives more efficiently................................................................................12
4. Identify and assess different internal and external factors within the business environment
that impacts decision making for managers/leaders in operations management. ....................14
5. Continue to evaluate how operational efficiencies can be achieved to successfully meet
business objectives using appropriate management and leadership approaches. ....................15
6. Critically evaluate application of operations management theory and approaches and factors
that impact on the wider business environment........................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Operations management is mainly concerned with planning, organizing and supervision
of manufacturing, production and other provision of organisational aspects in order to ensure that
company deliver successful outcomes. In simple terms operations management is defined as an
area of management which is related to effective designing and controlling of process associated
to production and re-designing of operations of business in the production of products and
services (Donohue, Özer and Zheng, 2020). With the help of efficient operations management
an organisation can effectively ensure proper balance of costs with revenue through which they
can effectively achieve higher profitable outcomes. For this process both leaders and mangers
plays important role in assuring systematic operations of all activities while ensuring profitable
outcomes.
Present report has been conducted on Smith brothers (Contracting) Ltd, this company is
operating their functions as turnkey electrical engineering contractor in Elland, West Yorkshire.
Entity is offering wide range of services with highly trained fitter, electrical, wiremen and
jointers, project coordinators and back-office staff. In this report formative discussions has been
made in characteristics and roles of leaders and managers along with their roles applicable in
different situations. In addition to this, key approaches to operations manager and its importance
in achieving business goal in being defined in this report. Lastly, business environment impact
on decision-making and operational management is also covered in this report.
SECTION 1 (LO1 & LO2)
1. Provide definition a of a manager and a leader, analysing their differences in roles and
functions with reference to different situations within the organization selected
Smith brothers progressed their business from a small brand and emerged as one of the
trusted company in Elland, West Yorkshire. This entity is operating their services with highly
talented employees through which respective organisation assure higher customer satisfaction. In
addition to this, loyal staff effectively maintain performance and productivity of entity.
According to the evaluation it has been determined that power in organisational structure of

Smith brothers moves from top to bottom (Dhamija and Bag, 2020). For this leaders and
managers within company plays essential role that allows company to fulfil their objectives and
goals with great efficiency. Mentioned below there are wide range of responsibilities as well as
roles being performed by managers and leaders of respective company which is being defined
below:
Leader:
Leaders are those individuals who provide effective guidance and motivation to team and
individuals within entity with an aim to increase their performance for better workplace
productivity. As per the view point of John Kotter, it has been identified there are wide range of
roles being performed by leader of respective company through which they set proper direction
and direct employees towards the same in order to fulfil entity objectives. Smith brother take use
of positive attitude and confidence through which they encourage employees towards company
objectives.
Managers:
Managers are authorised with the essential role related to managing daily basis operations
and activities of organisation through which company can ensure higher profitability and long
term growth. In addition to this, they are also having responsibility related to identifying need of
resources in different departments and provide the same to them in effective manner as to assure
fulfilment of objectives in efficient way (Brito, Júnior and da Costa Diniz, 2020). Further it has
been evaluated in terms of Smith brothers that managers are authorised with the responsibility of
passing necessary and important instructions to top management to subordinates in order to
accomplish goals of company in effective manner.
Differences between Management and Leadership of Smith brothers
Basis of Comparison Managers Leaders
Behavioural characteristics Management of Smith brother
continuously engage in the
operations of innovation and
efficient decision-making for
Leaders within Smith brothers
mainly engages in the activities
related to offering effective
motivation and guidance to

higher growth and
sustainability of entity (Ren,
2020).
employees in order to
maximise their performance
for higher profitability of
company.
Authority and power Within Smith brothers,
managers are having power
and authority related to
management of task,
controlling of organisational
activities and decision-making.
Leaders are authorised with the
authority and power of
motivating employees with the
help of offering them various
motivating rewards in order to
increase their performance for
higher organisational
productivity.
Similarities between managers and leaders in Smith brothers
 Both managers and leaders however performing different roles and responsibilities but
have same objective which is related to maximise overall profitability and productivity of
organisation. In terms with Smith brother leaders and manager it has been stated that they
undertake different operational responsibilities but aim towards increasing company
brand image in respective industry at great extent.
 Leaders and manager of Smith brothers perform their roles and responsibilities with
different standards but effectively provide guidance and motivation to employees in order
to maximise their moral and confidence for higher performance in order to increase
productivity of company.
Smith brother have most important aim which is related to offering higher level
satisfaction to their customers. For this leaders within company performs different types of roles.
In addition to this, they are authorised with the responsibility of managing wide range of
activities for which they use innovative strategies for higher growth. While in terms of managers,
they are associated with the role of gathering required capital and resources in order to manager
smooth operational flow. Mentioned below there are some certain situations in which leaders and
managers play different roles:
Team-building:

Team is group of individuals in which different background, skills and interest of
individual are combined together for a common goal. In Smith brothers, managers ensure that all
the individuals are performing their responsibilities in a team as to accomplish objectives in time
effective manner with higher efficiency. Leaders of entity believes that by making employees
working in a team not only increases their performance but also maximises productivity of entity
at great extent. It has been evaluated that Smith brothers leaders take use of autocratic leadership
style and ensure trust and cooperation with subordinates in order to offer them positive and
healthy workplace environment for more productive outcomes. Further this has been evaluated
that leaders within company undertake use of belbin team role, in order to effectively allot roles
and responsibilities for each and every individual as per according to their potential and talent
(Kabyl, Abbassi and Li, 2020). It significantly increase workplace efficiency and overall
productivity rate of company.
Project management:
Management of project facilitate entity to fulfil their goals and objectives under set
standards and measures. In context with Smith brother managers, it has been evaluated that they
perform effective roles from starting of the project. In this they determine difficulty level of
project and underline skills and knowledge required for the accomplishment of project. In
addition to this, they are also authorised with the role of formulation of optimum strategy in
order to utilize resources effectively (Atasu, Huang and Toktay, 2020). While in terms with
leaders, they effectively allot roles to employees according to the underlined skills and
knowledge of managers. Along with this, they also guide and motivate employees during project
when they feel de-motivated in order to increase their performance for rewards and appraisals.
2. Apply different theories and models of approach in leadership, including situational, systems
and contingency leadership. Appraise the different approaches within the given
environment assessing their strengths and weaknesses.
Leadership is defined as an activity in which leaders are authorised with the roles and
responsibilities of leading, motivating and guiding individuals for more efficient performance for
higher organisational productivity. Leaders within Smith brother engages in the activity related
to sharing vision, information, and objectives of company to each and every employees in order
to align performance of all workers with high team spirit for more productivity and growth.
Different approaches of leadership is stated below:

Situational leadership:
In this leadership style, leaders within Smith brother effectively make change in their
style of leadership according to prevailing situation as to gain better opportunities from them. It
has been evaluated that leaders within respective company with the help of their analytical skill
effectively accomplish organisational goals by directing and motivating employees.
Contingency leadership theory:
This leadership style emphasize upon both leaders as well as situations in which they are
interacting. With the help of this theory leaders within Smith brothers effectively maximise their
decision-making and leadership skills and changes policies according to the situation. Further it
has been evaluated that this leadership style allows leaders to undertake use of two different
forms of leadership style that can be people and task oriented.
System leadership theory:
System leadership allows leaders within an organisation to formulate the conditions in
which individual at all level can effectively perform their work (Saffar and Obeidat, 2020). It has
been determined that leaders are having responsibility related to transforming organisational
function into system. Thus, by taking of this leadership style leaders of Smith brother can
develop better and highly productive workplace environment that facilitate higher growth and
development.
According to the above analysis, it has been defined that leadership and management processes
maximise overall productivity of organisation. They are aligned with various responsibilities and
roles and with the use of efficient approaches according to prevailing situation managers and
leaders of Smith brothers effectively conduct their roles for higher profitability and long term
sustainability of company.
3. Critically evaluate different contemporary theories on management and leadership like
management by objectives, behavioural or contingencies theories in the given context.
Business environment is inclusive of different types of factors or elements that are
required to be effectively consider by leaders and managers within entity in order to fulfil
organisational objectives and goals in a well define and effective manner. It is essential for
leaders and managers to evaluate each and every situation in an effective manner and undertake
advantage of leadership and management theories accordingly:

Contingency theory of management
This theory of management states that every organisational circumstance is unique, this
makes selection of different management approaches according to specific situation. It has been
evaluated that an organisation is affected by different types of internal and external factors thus,it
is essential for a leader or manager to effectively identify best management style according to the
prevailing situation in order to assure high growth and profitability.
Behavioural leadership theory
This theory states that, leadership behaviour get affected by environment of team
members. In order to effectively accomplish organisational goals it is essential for leaders to ask
cooperation form team members in the process of decision-making process. This will allow
leaders to enhance motivation and performance of employees. Along with this, this leadership
theory assist leaders to lead individual with the help of effective leadership style such as
coaching leadership, with this leaders can enhance performance and productivity of workers by
offering regular feedback to them.
Management by objectives
This is a strategic management model that mainly aim towards making significant
improvement in organisation performance by defining objectives in clear way. With the
assistance of this approach managers can effectively compare actual performance with
achievements to defined objectives.
By undertaking advantage of above mentioned approaches and theories according to
situation managers and leaders within Smith brothers can effectively perform their roles and
responsibilities in a well define and effective manner.

SECTION 2 (LO3 & LO4)
1. An introduction to the key operation functions of the organisation you have chosen
Smith brothers operate their business services as turnkey electrical engineering contractor
in Elland, West Yorkshire. This entity offer wide range of services with experienced and skilled
employees. Company aim towards offering high quality services to customers in order to assure
more competitive advancements. To accomplish this aim leaders and managers within entity
perform different operation functions that are being defined below:
Operation role of leader
Direction and motivation:
Leaders within entity provide effective direction and motivation to each and every employee in
order to align their role towards organisational objectives. Through motivation leaders enhance
performance of employees in effective manner.
Improve moral and job satisfaction:
Leader within Smith brother continuously improve moral and job satisfaction of
employees by offering them rewards and appreciation.
Operation role of manager
Planning and implementing:
Managers within Smith brother effectively engage in the process of planning and
implementing organisational aim and objectives.
Managing projects:
Managers of Smith brother assures that they provide resources to accomplish project on
timely basis in order to fulfil entity goals without any delay.
2. Explain the key operational management approaches managers or leaders can adopt to
enhance the organizational value and achieve objectives.
Operations Management is concerned with the process of converting raw material into
finished goods and services, the main aim of operation management is to maximise the profit of
an organisation. The main target of this operation is to use labour in a timely cost effective way
to deliver customer expectation.

Illustration: Operation Management Software
Source:Operation Management Software,2020
Overview of Smith Brothers Contracting Ltd.
Smith brother Ltd is an electrical contractor with an experience of 20 years, the company
progressed from a small , family run-business and today it uphold a series of industry and have a
health an d safety records. Smith Brothers covers the sector of Water treatment, Capacity
management, Offshore as this department benefits the organisation more, the company has
created a good market place and work with vast range of organisation from nationwide providers
and blue chip brands , to local SME's and construction partners
Strategies of Operation management which ensures the smooth implementation of their
obligations and responsibilities are as;
 Leveraging Data
The operation manager focus on quality, accuracy and reliable data for planning, strategic
marketing and decision making, efficiency and effectiveness metric are used for this pupose.
 Analysing Inventory

This tool is make easy for manager to categorize their product, if company uses inventory
management software it becomes easy for inventory to analyse, this analysis is also called ABC
analysis.
 Designing
Smith Brothers work hard in making best research , right development of goods process
which results eventually to a long- lasting impression on customers.
 HR Management
The company of Smith Brothers value their staff and consider the backbone of their
company, they value the loyalty of their customers loyalty and believe that their company won't
be able to produce quality goods or services.
Key approaches of Operation Management
 Six Sigma
Smith Brother Contracting ltd. Give high priority is the quality of the product, Six sigma
is an approach that focus on quality which was developed from 1985 to 1987 by
American engineer Bill Smith at Motorola, Six Sigma used tools as trending charts ,
potential defect calculation an other ratio.
 Total Quality Management (TQM)
This system of management ensures that every member of staff is committed to
maintaining a standard of work , its a continual process of detecting and eliminating
errors in manufacturing ,improving customer services ensuring employees are up to speed
with training (Prakash, Charan and Gupta, 2020). Smith Brothers company's product
quality is a measure of goodness to meet its specification.
 Lean Production
The lean production is used in operation management to minimise the waste of resources,
Smith Brothers Contracting Ltd. Use this method to produce maximum output in
exchange of minimum output, this leads to improve operations and increase profitability.
Roles of Leader
Leader understands the value of employees in the organisation and can effectively
communicate with operation staff, he train his employees to manage the input and output of
resources to optimize processes to decrease the cost of goods per unit.
Roles of Manager

Operational manager have to handle the staffing requirement of the organisation, they
train new employees and work with HR as managers are aware with the needs of employees in
each department also create and manage department's budget.
3. Evaluate the role of leaders and managers through different approaches so as to achieve the
organizational objectives more efficiently.
Leaders and managers perform different types of role that aim towards increase
efficiency of organisational and employees performance towards accomplishment of goals:
Role of a leader
 Leaders within Smith brothers perform most important role which is related to guiding
individual within workforce towards vision of company in order to ensure that all the
functions are being accomplishing according to underlined standards of company.
 Smith brothers leader conduct role associated to regular monitoring and reviewing of
functions and activities in order to make sure that end objectives get accomplished in
time effective manner.
Characteristics of leaders in Smith brothers
 Within Smith brothers leaders are effectively committed to honesty for their roles in
order to lead and guide employees while maintaining positive standards and environment.
It tend towards increasing overall profitability of company.
 Leaders within Smith brothers posses charismatic personality which is idle for higher
performance of employees through which organisation assure productive outcomes.
Role of managers
Planning:
This is one of the most role of Smith brothers managers, as in this role they identify
different opportunities for growth and undertake project planning for higher profitability by
aligning policies and guidelines of company (Franke, Foerstl and Heese, 2020). In this role
manager undertake use of different planning tools like, The matrix diagram in order to increase
efficiency of planning process.
Organising:
It is an essential role through which managers within Smith brothers makes sure that all
the activities that has been laid down in planning stage are being accomplishing as per according

to corrective standards in given time. In addition to this, it has been evaluated that in this role
managers of respective company effectively engage in the role of allocating capital and resources
that are required to conduct activities.
Commanding:
Proper command lead entity towards fulfilment of laid down objectives with higher
efficiency. In terms with Smith brothers managers, it has been identified that they undertake this
role with the help of proper chain-of-command in which employees are required to report to their
team leaders, team leader must report to their managers, manager are subjected to report to CEO.
With the help of efficient chain of command respective entity ensure accomplishment of goals in
effective basis.
Control:
It is an essential role, that allows entity to manage all their operations under set standards.
This role is being effectively undertaken by Smith brothers managers in which they control
performance of employees by taking use of regular monitoring of their performance and
behavioural conduct towards entity goals.
Coordination:
This is one of the most important role, in which Smith brother manager ensure that all
that all the employees are performing their role with proper coordination as to assure higher
profitability.
It has been evaluated that both leaders and managers of Smith brothers conduct their roles and
responsibilities with the help of management and leadership theories:
Transformational theory of leadership:
It is mainly acts as an approach that lead leaders to cause significant change in social
systems and individuals. With the help of this leadership theory leaders with Smith brother
creates valuable as well as positive changes in employees for higher growth.
Classical theory of Management:
With the help of this theory, managers within Smith brother ensures clear structure for
management through which they increase efficiency and productivity for workers. In addition to
this, with the application of this theory managers creates better workplace environment that
develops bond between workers and managers.

4. Identify and assess different internal and external factors within the business environment that
impacts decision making for managers/leaders in operations management.
Business Environment is sum or collection of all internal and external factors such as
employees, customers needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends, market
trends, economic changes, etc. These factors affect the function of the company and how a
company works directly or indirectly. Sum of these factors influences the companies or business
organisations environment and situation. While if it is talked about operations Management
(OM), it is concerned with the running of the day-to-day operations of a business or other
organisation as effectively and efficiently as possible. It is of crucial importance in all
organisations, whether they manufacture products for customers or provide a service. Further ut
has been evaluated that business environment helps in identifying business opportunities, tapping
useful resources, assists in planning, and improves the overall performance, growth, and
profitability of the business. There are various types of Business Environment like Micro
Environment and Macro Environment.
In addition to this, it has been evaluated that with the help of evaluating factors that are
prevailing in business environment Smith brothers leaders and manager can not only identify
various opportunities for more growth and development but can also allow themselves to identify
early signs of threats and can further develop strategies for more profitable end outcomes
(Contreras and et. al., 2020). Along with this, it has been stated that evaluation of different types
of factors in business environment leader managers to tap useful resources and further convert
them into useful products for more growth. It has been identified that business environment is
having positive impact upon decision-making of organisation as with the assistance of this Smith
brothers can effectively cope up with rapid changes that will later lead them towards long term
sustainable growth. Further as per according to evaluation it has been evaluated that leaders and
managers of respective company can also gain number of benefits by analysing business
environment in their planning and policy formulation process which also helps in making
significant improvement in performance of entity.
It has been evaluated that there are different factors that are affecting operational
management and decision-making of managers and leaders within entity. In relation to this some
of the internal and external factors are being defined below:

Internal Factors
Internal factors are those that occur in the business premises only. Some of the internal
factors of business environment that can affect their working are as follows:-
Owners (Shareholders):
They are entity stakeholders as they have make certain amount of contribution in
purchasing share of company for profitability. In relation with Smith brothers managers and
leaders have responsibilities to maximise performance and productivity of company. It increase
entity brand image in respective industry that attract more number of individual to buy stake
holding in entity.
External Factors
It include factors that are prevailing outside of an organisation can have significant
influence upon performance and decision-making of company.
Competitor efficiency and flexibility:
There is aggressive competition prevailing in business environment in which Smith
brothers are performing their activities (Jiao and et. al., 2016). Thus, it becomes essential for
managers and leaders to undertake advantage of strong competitive practices and policies for
high growth and long term sustainability.
5. Continue to evaluate how operational efficiencies can be achieved to successfully meet
business objectives using appropriate management and leadership approaches.
Operation management was previously called production management, it began with
division of production. Operation management is a stepwise process which involves planning,
organizing and make necessary improvements for higher profitability (Song, van Houtum, and
Van Mieghem, 2020). Operation management is important in business organisation as it helps
effectively in management , control and supervise goods, services and people.
Smith Brothers Contracting Limited has emerge from a small business to this position
today, It has a vast experience in this rapidly growing sector it covers renewable, commercial &
industrial , capacity management, gas peaking and water treatment. Smith and brother is a large
electrical engineering contractor and its objective is to be in the leading position , to earn profit,
to grow and establish more and more.

Source: Operations Management: Functions, Importance, Scope, Nature,2020
Importance & Values of Operational Management in achieving business objectives
Product Quality
The first firm checks the durability and reliability in a product, Smith Brothers
Contracting Limited is to satisfy its customer by providing a high quality product to make loyal
customer.
Cost Reduction
Reduction in operating cost generates profit or increase revenue as well, Smith Brothers
Company through productivity management focus on maximum reduction of cost, exact number
of product is produced as requested which also helps in waste reduction.
Customer Satisfaction
Customer satisfaction is of utmost importance for any successful organisation, it can be
observed that Smith Brothers is well established today and connected with all the well known
companies due to providing satisfaction to their clients with high quality goods.
Productivity
Illustration 1: Operations Management: Functions, Importance, Scope, Nature

Productivity is defined as the ratio of input and output, management of employees is also
a vital factor in this process as proper staffing is required to meet up the resources and demand of
productivity.
Effective Utilization of Resources
The vital role of operation management is to ensure proper utilization of resources, Smith
Brothers utilize each and every sector of utilization of the resources to in operation process each
and every resources have a contribution in achieving the goal of organisation (Khan et. al.,
2018).
Capacity Management
Capital which is invested in the business are to be managed properly as investment in
resources considering all the output acquired after input is involved . Proper management is to
be done to prevent wastage of unused capital and ensure safety for future use.
Profit Maximisation
The goal of any organisation is profit maximisation and this goal can be achieved by
increasing sales, Smith Brothers can reach its goal of maximising profit if it can meet up with
demand of customers , and increase the base with attractive offers and promotion.
Operation management has an important role in achieving the goal of the organisation ,
the all the process involved in converting a raw material into a finished is a very long process
which require attention by the leaders of the organisation to gain the targets (Miki and
Natsumeda, NEC Corp, 2017).
6. Critically evaluate application of operations management theory and approaches and factors
that impact on the wider business environment.
It is essential for an organisation to conduct effective business operations in effective
manner. For this they can undertake advantage of operations management theory and approaches
for higher growth and development:

Lean manufacturing:
With the assistance of this approach Smith brother can eliminate waste like excess
inventory, motion and overproduction in an effective manner. By undertaking advantage of
target of elimination company can perform operations in cost effective manner.
Six Sigma
By undertaking advantage of this approach entity can significantly make improvement in
process outputs quality. In addition to this this approach will aid entity to remove causes of
errors and defects through which they can reduce variability.
Internal factor
Employees:
Employees plays crucial role in generating revenue for organisation. In context with
Smith brothers managers they are having responsibility to hire skilled and talented employees for
organisational objectives. While leaders offer them regular motivation as to keep them aligned
with company goals.
External factor
Technological factors:
Technology is changing in fastest rate which is essential to be consider by leaders and
managers of Smith brothers in order to make sure that high-tech and advanced technology is
being used by company for their operations. As it increases their decision-making and
operational management efficiencies.
CONCLUSION
According to the above mentioned report it has been concluded that, operations
management plays important role for an organisation that ensure successful conversion of raw
materials into products and services into finished products in order to generate value form them.
In order to conduct these operations in systematic manner leaders and managers take advantage
of different approaches that ensure efficient productivity. Further it has been evaluated that,
leaders and managers are authorised with wide range of roles and responsibilities through which
organisation assure maximum growth and development. This has been evaluated that, there are
number of factors that are impacting business environment decision-making and operational
management and are essential for leaders and managers to consider in order to facilitate high

profitability. By considering all factors managers and leaders can effectively lead entity to ensure
long term sustainability and higher productivity.

REFERENCES
Books and Journals
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and bibliometric analysis. The TQM Journal.
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Franke, H., Foerstl, K. and Heese, H.S., 2020. The Interaction Effect of Goal Misalignment and
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Online
Operation management software, 2020 [Online] Available
through:<https://www.myeasyiso.com/iso-9001-2015-qms/operations-
management.html>
Operations Management: Functions, Importance, Scope, Nature,2020 [Online] Available
through:<https://commercemates.com/what-is-operations-management/>