An Analysis of Operation Management, Leadership, and Functions at ASDA

This report provides an in-depth analysis of operation management, leadership styles, and managerial functions within ASDA, a major supermarket retailer. It begins by contrasting the roles of leaders and managers, highlighting their similarities and differences, and then explores the functions of a manager according to Fayol's principles, illustrating how these functions are applied within the company. The report also delves into various leadership theories and models relevant to operation management, including systems theory, situational theory, and contingency theory, and assesses their strengths and weaknesses within the context of ASDA's operational challenges. Furthermore, it examines different approaches to operation management utilized by ASDA, such as Six Sigma. The report concludes with a discussion of external factors that impact the company's operation management.

MANAGEMENT AND
OPERATIONS

INTRODUCTION
Operation management refers to administration of the business related activities to
develop high efficiency level with in company. It is related with converting the labour and
materials in to the services and products to enhance profit level of firm. It is responsible for
managing production process of services as well as products. It consists planning, organising,
coordinating and also controlling all resources which are required to manufacture services and
products (Balasubramaniam and et. al., 2016). The operation management includes getting
included in resources of firm for an instance equipments, technology, staff member etc. This
present report is based on ASDA company that was founded in year 1949. It is supermarket
retailer and other hand this, ASDA firm provides mobile phone and financial services. In this
mention report will be discuss about the situational, contingency and systems leadership by using
the different scenario. There will be discussion about the different functions of a manager on the
basis of Fayol. Different outside factors which can impact on the operation management of
company will also be discuss in given report.
TASK 1
a) Differences and similarities between a leader and manager considering their roles and
characteristics
Manager and leader are both the employees of an organisation which works to manage
other personnel and ensure to provide benefit to the organisation. Asda is a large scale company
which operates in United Kingdom. In order to build an understanding about both of these
individuals in a business organisation, similarities and differences between these employees are
discussed below:
Similarities between Leader and Manager:
Overall objective - Leader and Manager are both included in the staff of an organisation which
has to function according to the overall organisational objectives (Christopher, 2016). Asda is
large scale retail super market chain which has various members and leaders. Both of these
individuals has to operate with the aim of achieving organisational aims and objectives.
Position - Designation of manager and leader is different, but the position at with these
individuals work is similar that is at managerial position. Leader as well as manager are the
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superior and has numerous subordinates which work under them. Asda has appointed both
manager and leader at all there supermarkets in order to ensure proper management and control.
Qualifications - Manager and leader has variation in the functions due to which they
require to posses different skills but in order to develop those skills, qualifications of both of
these designations is similar (Cordray and et. al., SCIENCELOGIC Inc, 2015). Qualifications
which are required to be possessed by manager and leader specially in ASDA is managerial
qualifications of business administration.
Differences between manager and leader:
Basis Leader Manager
Definition A leader is an individual who
encourage and motivate its
subordinates to work better and
contribute towards overall
organisational goals.
A manager is a person who
manages an organisation and
controls all the management
functions such as staffing,
planning, controlling and
directing.
Skills Leader is an individual who requires
leadership skills so that they can set
an example for their subordinates to
perform better. Leaders of ASDA
possess skills such as motivation
skills, controlling skills and
monitoring skills (Evangelopoulos
and et. al., 2016)
Manager is an employee of an
organisation which requires
managerial skills such as
providing direction to employees,
controlling them and many more.
Focus Main focus of team leader is usually
on vision of an organisation and it’s
people. Leader of ASDA ensures
proper direction towards vision and
satisfaction of employees. This
individual focus on developing and
innovating skills of its followers in
order to achieve organisational goals.
Focus of manager is restricted to
aims and objectives of a company
only. This individual focuses on
managerial functions such as
directing and controlling.
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Functioning
process
Process in which leader operates is
leadership.
Manager operates under the
process of management.
Aim Main objective of leader in an
organisation is to enhance growth
and development of its followers as
well as of its organisation.
Whereas main aim of manager is
to achieve required and per
determined results.
Approach Approach which is followed by
leader is direction, where leader sets
a direction for its followers (Grahn,
Johansson and McKelvey, 2014)
Manager uses planning approach
in which they plan all their future
activities which are further
communicated with the
employees.
b) Functions of a manager according to Fayol and how a manager in yourorganisation performs
these functions
The role of manager is big within an organisation as they have to perform many functions which
help to accomplish organisational objectives within stipulated period of time. There are many
type of functions are performed by manager within an organisation according to situation. They
always be in support of an organisation and provides their contribution in the process effective
disbursement of roles and responsibilities to employees according to their capabilities and
situational needs. There are many benefits which are associated with the effective functioning of
role by an manager includes higher employee engagement, large amount of profits, higher
productivity and attainment of competitive advantage within predetermined timeframe (Haimes,
2015)
The different role which are performed by manager are also described by manager in context of
an organisation. The different type of roles which are needed to be performed by manager within
organisation is related to planning, organising, controlling etc. Henry Fayol has proposed 5
functions of manager as the must function they should do to attain their maximum productivity.
Manager function is to manage the workplace so that every employee in the workplace gives
their top performer thus helping the company to attain their vision (He and Chai, Huawei
Technologies Co Ltd, 2014).
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All the roles have their different importance within an organisation that can be understood from
the points defined below:
Planning: This is one of the important aspect which includes about planning of the activities and
functions of an organisation which are needed to be perform in future period of time (Jacobs,
Chase and Lummus, 2014) Their goals and effective allocation of resources according to the
demand and need of an employees and an organisation.
Organising: This is the function in which the prime duty of manager is to effectively manage the
roles and responsibilities which are assigned to employees as they complete their work with full
compassion and proficiency.
Commanding: This is about providence of guidance to employees for completion of tasks with
quality. This will have huge importance as this help to create base where employee trust on each
other and work in a team under the guidance of manager for effective accomplishment of
objectives.
Controlling: One of the important aspect which includes about identification of the aspects
which are not done as per the pre determined standards and take appropriate actions through
desired result should be achieved. One of the basic reason behind doing this function by manager
is to minimise the risk which are associated with the working.
Coordinating: One of the main of this function is to effectively communicate all the
discrepancies and loop holes to the employees in their working which impacts their performance
negatively. This will provide an opportunity to bring effective communication and coordination
between employees with the organisational goals and objectives.
c) Different theories and models of approach associated with operation management
For conducting business activities and operation in an efficient way, a company usually
faces several issues on a regular basis (Hugos, 2018). It involves resistivity among employees,
problems and fights, disruption, change in wants of clients etc. therefore, the manager working in
Asda has adopted several theories related with leadership so that dealing and handling issues will
become easy and more effective. Some important theories associated with leadership that
supports in solving issues and problem occurred in business are discussed below. Along with it,
there strength and weaknesses are also mentioned beneath:
System theory of leadership: This theory of leadership is based on the basis of regulation,
policies and rules of the company. Along with this, it is based on the system that the company
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follows. As per this theory the major goal of the manager of Asda is to achieve pre-determined
targets and objectives effectively within the specified period of time. One example in this regard
is provided as follow:
Manager of a company wants to maintain maximum productivity in the company. This
will help the company to improve its market shares and profit margins. For this, they divide tasks
and works in different workers. This helps the employees in enhancing their skill and capability.
By this it became easy for employees to perform their task appropriately (Marchington and et.
al., 2016).
Strength: This aspect takes cares of both organizational and individual goals.
Weakness: This theory has certain limitations like it slows down the decision making process
(Narayanaswami, Raghunath and Rosu, Penn and Pennix, 2017).
Situational theory: In accordance with this theory, the manager working in an organisation
adopts several approaches as per the needs of the company. For example, the manager under
production department asks the workers to complete their allotted tasks in specified time. The
manager acts strict with the employees. This is because if employees will feel small pressure on
them. They will perform well and efficiently without acting lazy and tired. This will help the
firm like Asda to enhance their productivity and market in accordance with the required targets.
Strength: This aspect of leadership is flexible in its approach as it supports the benefit to
acquire their aims and objectives easily.
Weakness: This theory takes care of instant needs and requirement that originates in the
market which distracts the manager to peruse long terms objective of the firms.
Contingency theory: This theory laid emphasis on the fact that no theory in marketing is
appropriate and perfect. There is no theory which will fulfills all the requirements of the
companies. It advises the manager of Asda to analyze and identify the actual needs of the
company. Manager then chooses which theory is suitable and best in accordance with the
situation and condition (Pundi and et. al., 2015). In the result, this theory contributes in satisfying
the demands of the clients and entire business also. In reference to the companies like Asda, this
management theory is appropriate as it deals and handles the new issues and problems that arises
every day. This helps the firm in maintaining their sustainable performance with the market and
business world.
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Strength: It supports in creating, managing and maintaining the flexibility that is needed
in the workplace especially in big organisation. It is basically considered to handle difficult
market condition and in reducing the effect of unfavorable conditions that takes place during
managing business.
Weakness: This management theory fails to provide efficient results in conditions like
when a firm plan to modify and change their organizational structures in accordance with the
market trends.
SCENERIO 2
1) Various approaches to operations management and identifying what is used in your store
Operation management is the area for management of controlling and designing stages of
redesigning and production business operations in production of goods and services. It is
responsibility to ensure whether operations of business are efficient for using few resources and
effective in meeting requirement of customers. It is managing production system in which input
(labour, machine, raw material) is converted into output (goods or services). It manage quality,
create service and produce products. It covers following sectors such as banking, companies,
customers, hospitals, using technology. ADSA also use operation management for effective
running of business and achieving goal and objective. The different approaches used by ASDA
are as follows:
Six sigma- This was developed by Bill Smith and Jack Welch while they were working
in different companies. It is set tools for improvement of process. It is strategy for improving
quality of output by finding and removing causes and minimizing variability in business
operations and manufacturing. ASDA also use such approaches for providing quality goods and
services to their customers and achieving result. This create loyalty towards company and its
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operations. This approach was adopted from Japan in various countries and in different
companies for success achievement.
JIT (Just In Time)- It is also known as just in time production or Toyota Production
System (TPS) which helps in reducing times for production along with response time from
suppliers and consumers. This was developed for improving time management of products and
service. ASDA also need to follow this approach to fulfil their customer need and demand within
stipulated or specified time. There are many company who promise to provide goods and
services to their customer in time but they fail so to overcome such issues this approach has
developed.
TQM (Total Quality Management)- It is the efforts of organisation to continuously
improve employee ability for demand services and products. It is the tool for improving quality
control. It is long term approach for customer satisfaction. Here all members participate for
improving processes, service, products, and culture. ASDA also use this approach in corporation
for improvement of quality on continuous basis. It follows principles for achieving targets such
as: process centred, customer focused, continuous improvement, communications, decision
making on fact based, strategic and system approach. This bring effective results in business.
Lean Manufacturing- It is also called lean production which means minimizing waste
within manufacturing unit without productivity scarifying. It consider overburden and
unevenness both waste factors. It add value for reducing waste materials. The waste can be
overproduction, transportation, inventory, waiting, non value adding processes, motion, scrap
and inspection. ASDA also need such approaches in firm for reduction of waste materials which
arise through various factors. This minimizes cost and maximizes output and productivity.
After analysing all mentioned approaches it is concluded that ASDA should apply lean
manufacturing because there is high wastage of cost and output at firm which can reduced by
help of this. So, in order to achieve success this is best approach for ASDA.
2) Role as a store manager a classic example of an operations manager
Store managers are those people which are in charge of the whole stores and work with
the staff members. They are in charge of store operations, make run business smoothly and meet
with any budget as well as sales objectives. The store managers of ASDA are responsible for
assuring the employees to provide the better services to consumer and also monitoring financial
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performance of store. It take care daily store operations and also assure enhance profit level of
store. Different roles of store manager in ASDA supermarket company mention below:
Develop budget- Under this, main role of store manager in ASDA firm is to prepare an
effective budget to identify the needs finance for perform different business operations. If firm
will develop the budget then it can reduce the unnecessary expensive.
Recreating staff members- The store manager hire the well qualified staff and also
provide the training so that their skills and competencies can be improved. It should be assure
that all staff members can contribute towards performing high functioning of store. On the other
hand, it is a responsibility of store manager to delegate its responsibilities to its subordinated on
the basis of their specialisation.
Managing assets of store- The safety and security is primary responsibility of the store
manager, it must be assure that at store there should be sufficient inventory available so that
consumers can not face any kind of problem.
Attain set target of sales- Store manager enhance the motivation level of employees so
that they can perform in a better manner and also develop the different strategies. If the
employees will be motivates then they will focus on attaining the set aims and objectives of firm.
Functions of retail managers
Promotion- As ASDA is large size organisation and the store manager of this firm is
responsible for creating as well as executing the promotional programs. They develop
advertisement campaigns, place ads in the local newspapers, television etc.
Store operations- The main function of retail manager is to overall seeing the operation
in the ASDA business firm. In operations consists staffing, security, cleanliness and bookkeeping
of the store. On the other hand, managers are accountable for the profitability of store and also
develop the cost- cutting measures to reduce all expenses.
Compliance- It is a function of store manager to assure the compliance. Any decisions
related with areas like promotion and merchandising are identified through high management so
that retail manager can implement the strategy of firm in these areas in an effective manner.
These all are the main roles and functions of store manager. Through performing all
these, managers can attain their objectives and enhance profit or productivity of business.
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3) Significance of operations management in your store
There are many advantages which are attached with the application of the concept of
operation management techniques. This will provides an opportunity to an organisation is to
provide their best in market and sustain their position. The advantages which are attained by an
organisation can be understood from the points defined below:
 Acceptance of the techniques of operation management provides an opportunity to
effectively mange the organisational activities on daily basis. This will provide an
opportunity regarding optimum utilisation of available resources like raw material,
money and other resources. Optimum utilisation of resources help in reduction of
operation cost and increment of profit margin. This will direct impact upon the growth of
employees as they feel motivate and satisfied that they are capable of doing their work
within stipulated period of time and attain higher amount of benefits.
 Application of approaches of operation management techniques help in improvement of
overall productivity of an organisation. This will provides an basis regarding checking of
efficiency of the manager as well as employees. This will help in removal of deviations
and provides contribution regarding improvement of their skills.
 The approaches like Six Sigma and TQM has huge contribution in waste management
and quality control with organisational products and activities. This will help to provide
their best to customers in market and ascertain their trust and loyalty.
 Higher amount of profits can be easily achieved by an organisations after the application
of such techniques as this will provides an opportunity to produce their final products at
less cost which results in improvement of their profit margin.
 One of the benefit that can be ascertained from the use of operation management
techniques is about attainment of competitive advantage in market as help to make their
products from their rivalries.
 Sustainability is one of the important aspect which is optimum requirement of every
organisation. Application of the different approaches also help in this aspect to create the
base which aid in regular growth of business.
 Modification is the utmost requirement of an organisation according to the trends and
future perspectives that can be achieved through the application of operation management
techniques. Such kind of modifications provides an opportunity to an organisation to
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effectively brought out the changes in their working according to the conditions which
are already prevail in market.
 Risk controlling is one of the important aspect that can be overlooked with the help of the
application of techniques. As this will help to be safe in future while performing their
functions and provides an opportunity to be away from any legal penalties and
prosecutions. This will have direct impact upon the brand image of an organisation help
to attain the trust and loyalty of customer. Through this organisation is able to sustain in
market for longer period of time.
4) Key outside factors that can have an effect on the operations management for your
organisation
External factors are those factors which impact on business operations from outside and
they also impact on ability of business to attain the strategic objectives and aims. The external
factors are also impact on operation management of ASDA business firm. In order to determine
the external factors, company use PESTLE (Political, Economical, Environmental, Social,
Technological and Legal) analysis. These all are helpful in determine the factors and also helpful
in the process of decision making. PESTLE analysis is mention below:
Political factors- Under this factor include political instability, foreign exchange rates
etc. rules and regulations of government etc. Political environment of country is influenced
through political structures, intervention of government, foreign policy, political instability etc.
Changes in the rules and regulations of government impact on policies and decision making of
managers and leaders.
Economic factors- This factor consist inflation and deflation rate, interest rate, exchange
rate which can impact on the buying power of consumers. In addition to this, country with high
development rate give better opportunity for company to expand its business operations in the
various country.
Social factors- The aspects which are included under this is related to consumer
behaviour, lifestyle, age, education etc. All these factors have huge impact upon the
organisational activities as they have to change their operations according their vales which
makes the task more difficult. As, ASDA is prevails under retails industry where behaviour of
consumer changes rapidly this will negatively impacts upon their policies and strategies which
are needed to shift as per the requirements and this reduces their productivity and profitability.
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5) These factors impact upon your decision making as a store manager
The external factors are those which impact on business from externally and also impact
on the process of decision making of store manager in ASDA company. It is necessary for
manager to analyse and measure the external factors to determine those factors to reduce their
impact and through this managers can develop the effective strategies in better manner and also
take the better decision which can provide better opportunities to ASDA business firm. It will
help in enhance development as well as growth of business. Through this, managers in ASDA
firm can take the better and effective decisions. With the help of this, firm can take decisions and
develop new strategy for attracting the large number of consumers. In order to analyse all
factors, ASDA firm has been used the PESTLE (Political, Legal, Social, Technological,
Economical and Environmental) factors.
For an example- Changes in the regulation as well as legislation of country will change
the standards and the strategies. It can develop the negative impact on business.
It is necessary for store manager to determine elements for sustain company for long time
period at market place.
CONCLUSION
As per the above described research, it is concluded that the term management of
operation refers to efficient functioning with the company. The importance of manager and
leader in working procedure of company is discussed. Management and its operations helps the
firm in using all the material and resources in an optimized way. It is analyzed that contingency
is the best kind of leadership theory which is best suited for larger organisation. As it helps them
in achieving their desired results and goals. It can also be concluded that various internal factors
have impact on the business environment of the organisation. This is because these intrinsic
factors are related with the companies and their operations that they carry out on regular basis.
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