Operation Management: Leadership, Theories & Decision Making Impact

This report provides a detailed analysis of operation management within Clancy Consulting, focusing on the roles and characteristics of leaders and managers. It compares leadership and management functions, examining their application in various situational contexts. Key approaches to o...Read More

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................2
P1 Define and compare the different roles and characteristics of a leader and a manager.........2
LO3..................................................................................................................................................4
P4 Explain the key approaches to operations management and the role that leaders and
managers play..............................................................................................................................4
P5 Explain the importance and value of operations management in achieving business
objectives.....................................................................................................................................5
LO2..................................................................................................................................................7
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts........................................................................................................7
P3 Apply different theories and models of approach, including situational leadership, systems
leadership, and contingency.........................................................................................................8
LO4................................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational
management and decision making by leaders and managers....................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation Management focuses on designing and controlling the management and production of
quality goods and services at reasonable cost. This report will evaluate the operation
management of Clancy Consulting which is an engineering consulting organization. In Clancy
Consulting, The role of managers and leaders will be compared and their relationship with the
employees in order to generate effective output.
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LO1
P1 Define and compare the different roles and characteristics of a leader and a manager
Manager and Its role
Manager can be defined as a person who controls and administrate a group of staff or an
organization. The manager plays a vital role in functioning and leading various departments and
its employees (Tremblay et.al.2017). Manager is at the particular level on an organizational chart
and has the power to take the direct reporting of the employees about their performances and
working in the businesses.
Leader and Its role
The principal player in any group or department is defined as a leader. Leaders own a leadership
quality to guide employees in order to achieve the entire goals. They provide instruction,
direction and guidance to group and individuals by communicating and monitoring their
performances (Goetsch and Davis, 2014). Their leadership enhances the performances of
employees and helps to generate more output. A good leader motivates employees by setting
clear visions and accepting the future state of an organization.
Management VS Leadership
Table 1: Differentiate between leaders and managers in Clancy Consulting
Basis of
difference
Managers Leaders
Roles efficiency They reduce cost of the businesses in all
functioning areas and are responsible for
handling operations.
Leader’s efficiency utilises time, energy
and space and involves encouraging
employees.
Application of
relevant theories
for better
outcomes
Managers improve the performance of
employees by management by objective
techniques (MBO). This technique is
based on monitoring and recording
Leaders in Clancy Consulting rely on
decision making and follows contingent
approach that depends upon internal and
external situation. They follow
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performance of the business with the
support of all the employees in an
organization.
behavioural theory of leadership for the
successful productivity by having positive
behaviour in the organization.
Functions Management of the Clancy consulting
basically includes staffing, organising,
planning and controlling overall
operations by controlling cost for
increasing profits of the business.
Leaders develop moral, encourage
employees and set clear version in
improving work process.( Northouse,
2015)
Skills Utilisation Managers on the other hand use hard skills
like math, typing, writing, etc to monitor
the performance. For example software,
templates, spreadsheets and various tools.
Leader particularly in this organization
utilizes soft skills that includes decision
making, problem solving,
communication, intelligence and many
more. For example, the task is performed
with equal contribution of the leaders and
the action oriented approach is utilised.
Analysis of
theories
Manager deals in interpersonal, decision
making and information processing tasks.
For example, the manager may act as a
entrepreneur, resource allocator,
spokesman as well as leader too.
Characteristic of leaders depends upon
trait model of leadership. Two types of
leadership include transformational and
transactional leadership. Transactional
leadership is based on maintaining the
normal flow of operations whereas the
transformational leadership is based on
motivation and team building.
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LO3
P4 Explain the key approaches to operations management and the role that leaders and managers
play
Operations management improves the operation’s efficiency for achieving business objectives.
Therefore, for transforming the input into an effective output, Clancy Consulting follows various
approaches such as Lean Production that focuses on reducing cost and proper management by
reducing large amount of waste (Heizer, 2016).
Lean production:
The maximum level of output can be delivered by effectively reducing the waste quantity and
this can be achieved by the concept of lean production. Clancy Consulting offers value added
services to its customers and sells limited variety of products and displays smaller stores for
locating more business in different part of countries. The concept of lean production is based on
responsibility, consistency and simplicity as well as time based management.
Total quality management:
Quality Management refers to the delivering of quality services and products to its customers and
for this managers and leaders are responsible to maintain consistency within the business
environment. In accordance with lean production and to ensure quality management, Clancy
Consulting assigned the particular task to only those workers who are highly skilled in that
process and ensure that the task will be done right in the first time only. By following this
principle, there will be less waste and reduced cost output will be obtained. Clancy also provides
training program for bringing out skills so that various tasks can be performed at ease. In brief,
quality management includes random testing at production facilities, internal and external
inspections, contractually defined quality criteria and inspection on arrival at distribution centres
to deliver quality services and products (Krajewski.et.al. 2015).
Continuous improvement
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It is one of the most important concepts that bring consistency in the quality of operation. It also
involves in making changes in products, processes and services in order to meet the needs of
customers. Managers and leaders both motivate team members to reduce the waste and to
streamline the work.
Just in time approach
Just in time inventory is the process to keep the details of available stock of different
departments. It is the proper management of stock demanded by customers. It also supports
direct displaying of products and is sold from small stores.
Six Sigma Approach
Six Sigma approach is used to avoid defect in any operation and to perform meetings and
discussions to rectify any error in order to provide quality products and services. The manager
takes effective measures to bring improvement in the quality of products, services and process of
Clancy Consulting. This process includes defining the problem, measuring it, identifying the
cause of the problem, implementing and verifying the solution, and maintaining the solution
(Conger, 2015).
P5 Explain the importance and value of operations management in achieving business objectives.
Operations Management in Clancy Consulting plays an important role in achieving the business
objectives. Operation management design and manages the products as well as deals with
services and supply chains. It takes into account the acquisition and utilisation of resources
according to the customers need. It includes conversion of raw material into finished products,
inventory management, process designing, and executing of operational activities. Managers and
leaders look into the proper management of employees and handle entire operation (Van Der
Aalst.et.al. 2016). Combination of various activities will help management and their organization
to achieve objectives.
Operations management includes the generation of revenues and profits in order to gain
competitive advantage in the market. Through the effective supply of products and services, the
Clancy Consulting owns a higher position in the global market. An organization performs
production activities under ethical standards and develops the trust toward management and
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employees. Operations management also allows the marketing of goods to explore the market. It
also reduces the wastes and cost, monitors and controls the labour activities.
Importance of Operations Management in detailed is explained as
 Clancy Consulting enhances the satisfaction of the customer and achieve the business
growth. Proper execution of the supply chain and follow of distribution system helps an
organization to supply services and products according to the customers need.
 An organization can develop strong relationship with suppliers with the help of efficient
and effective management of resources and end products.
 An inventory management can be effectively utilised with use of just in time approach
that includes keeping details of stock. (Wild, 2017)
 Total quality management also plays an important role in the operation management
process. It focuses on bringing the quality at the lower cost and effective output.
 Continuous improvement and management aims at bringing small changes in the process
of the business.
 Processes such as lean production, total quality management, etc will help to avoid threat
rising competition of declining sales. It also helps to manage and streamline the process
and achieve objectives of process designing. (Dennis, 2016)
 All the functions of research and development activity, the finance department, human
resource department, etc, are integrated by operations management. An organization
increases its profit when operations cost reduces as compared to the sales or finance cost.
Introduction to an organization
Clancy Consulting is multi specialty engineering firm that provides various services that includes
building appraisals, building services, geo environmental, civil engineering & designing and
structural engineering. It operates in commerce, education, industrial, healthcare, residential,
retail and in many more sectors. An organization is headquartered at Holborn, London with
other offices at Liverpool, Manchester, Liverpool, Leeds, Glasgow and Prestwick.
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LO2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
Clancy Consulting leaders and managers perform various tasks in various situations for
enhancing the workers performance.
Role of Leader in Context with Clancy Consulting
Leader adjusts the style of working under the influence of managers, according to the situational
leadership theory. The leaders choose the appropriate style of meeting depending upon the
organizational situations. A different role of leaders in Clancy Consulting depends upon different
styles of leadership are as follows:
 Leaders take decisions and communicate with the team members about the completion
and execution of the target. They also closely monitor individuals and supervise the
overall activities so that an employee focuses on increasing the sales up to particular
level. In accordance with relationship oriented approach, leaders make effective
relationship with team members to gain profit for the organization.
 According to the situational theory, leaders choose various styles of selling by
participating in less experienced activities for improving the production system.
 Leaders will be be least involved in directing if in case manager has suggested just to
evaluate the task and report preparation by taking feedbacks. Leaders will only motivate
the resources for the quick task completion.
 According to the theory of situational leadership, leaders boost the morale of employees
and they also perform delegating styles so that employees can choose their own task. In
this case, leaders can perform task in less supervision.
Functions of managers
 Manager utilizes the theory of management for particular time period where employees
work together with managers for goal achievement by applying disciplined approach. If
in case Clancy Consulting increases its business sales, manager takes necessary steps for
the achievement of goal (Metz.et.al.2017). For processes such as recruitment of staff,
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increasing in advertising, and many more, managers also follow various steps after
establishing a plan for the goal achievement.
 Immediately after planning for the particular task or process, Manager organises overall
material and team according to the plan. Managers in Clancy Consulting are responsible
for assigning work, authorities and activities for goal accomplishment.
 Unlike other organizations where managers just guide, plan and organise, Clancy
managers discuss the problems with team and then assist them by guiding with the
solutions.
 Controlling Functions allows the manager to monitor an individual for continuous
checking of the status of the process and to take corrective actions for achieving goals.
(Kerzner and Kerzner, 2017)
 Staffing processes like recruitment, selection and appointing suitable candidates are
performed by HR manager for the completion of target and goals. (Kuhn, 2015)
P3 Apply different theories and models of approach, including situational leadership, systems
leadership, and contingency
Leader work for the management and employees so that the ability to work more efficiently can
be increased. Leadership also promotes the workers creativity and motivate the employees to
work efficiently. Leader also directs the employees in right direction so that the task can be
completed on time. There are various approaches and theories regarding leadership which are
explained as follows.
Situational Leadership
In the situational leadership, leader modifies the working style and ability of the workers and
directs the employees according to the requirement of the task. Leadership helps in maintaining
the better position and has the ability to enhance the skills of the workers for managing the task.
They execute the task systematically and in a proper way. Leader delegates the authority to the
workers so that they can choose the task of their own choice according to their skills and in this
case leader has to least intervene in that task. In this case they only direct the workers to a
minimum level. Situational leadership is mainly based on four general styles of management.
(Thompson and Glasø, 2015)
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Coaching: When an employee shows weakness and the need of improvement, Coaching is the
best method of leadership. For example, Sales manager helps the sales person in achieving
targets.
Directing: Application of experience and specific knowledge to right under challenging
situations and tasks is basically a directing style of leadership
Delegating: In this the workers are responsible as compared to the managers and the leaders. The
leaders only guide the works and that too on the request of employees. In this situation, the
leader act as a consultant.
Supporting Style: In this the leader plays an important role in motivating the workers and the
employees in order to increase the productivity of an organisation. This is also known as selling
style because leader prevail employees so that they have an ability to complete the job.
Contingent Leadership
This leadership theory performs the tasks in a more effective way when it co ordinate with
situational leadership. In this the leaders analyse the task in order to execute it and for achieving
the goals of business. Co ordination between the employees is important to meet the increase in
demand in Clancy Consulting. Leader posses’ special qualities for maintaining the organisation
rules and policies and therefore, they are responsible to function the entire task once completed.
(McCleskey, 2014)
System leadership
The system leadership follows an effective process to work together in an organization. It
initiates the task in a unique way to achieve the goal in an effective manner and also increases
the leader power for taking decisions. In order to increase the productivity, working ability of the
workers is identified and some strategies are implemented so that leaders can take decision to
achieve the end goals successfully. The co operation between the partners depending upon the
thoughts of the managers and the leaders working in organization is necessary in order to convert
the ideas into productive product. The leader also motivates and leads the employee in order to
achieve the goals of an organisation. (Senge et.al. 2015)
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LO4
P6 Assess the factors within the business environment that impact upon operational management
and decision making by leaders and managers
There are several factors that affect the growth of the business and the most important is the
relationship between the leadership and the management. The factors such as ethics, culture,
values, etc have a great impact on decision making in Clancy Consulting. (Ferrell and Fraedrich,
2015) Major factors affecting the decision making in Clancy Consulting are described below:
 For maintaining effective relationship between an employee and managers, positive
culture within the organisation is one of the most important factors. The positive culture
can be explained in the terms of giving rewards, promotions, etc.
 Technology also plays an important role in decision making. It improves the overall
operations and will help the managers to assign a suitable position for suitable job. The
overall cost of the task can be effectively reduced by controlling the cost of the
application of the technology for the particular assignment.
 Employees an employer relationship has a great impact on increasing the growth of the
business. Healthy relationship with the stakeholders maintains the interest of employees
to work comfortably at the workplace. Therefore suitable tools and techniques should be
used for managing the entire production process.
 Motivation enables the employees to boost up the morale which in turn results into the
achievement of business goals in a particular period of time.
 The support of leaders as well as managers leads to effective functioning of operations.
The proper behaviour and support enable the employees and workers to maintain honesty
and proper time management.
 Ethics at workplace are needed in order to encourage employees for the accomplishment
of any task. Low morale is because of the poor communication of managers to their
employees and workers. (Cascio, 2018)
 Managers when lack to provide proper coaching, training and direction for the assigned
task, employee’s morale generally suffers which in turn result into the failure of the
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completion of the task. Manager with efficient leadership will take input from the
employees and guide them according to the problem of the situation.
 Leaders and managers should set clear goals in order to maximize the productivity of an
employee. Day to day decisions should be taken by the employees but on contrary they
should be guided by strict goals of an organization. (Nguyen et.al. 2017.)
 Effective communication skills also play an important role in the decision making of
Clancy Consulting. Employees consider leaders as their role model and will work and
communicate in a similar manner. Therefore effective communication of the leader and
managers with the customers, will lead the workers to follow in the same manner.
 High turnover of employees is because of the poor leadership and management and this
highly affects the business profits. The workers, who are not motivated, left the job and
the new workers replace them. This definitely decreases the efficiency and increases the
probability of not completion of work on time.
 Managers can motivate its employee by not only incrementing the salary but also by
providing other benefits such as expense accounts, vehicle and health insurance, paid
time off, etc. These all benefits help an organization to retain its skilled employees.
 Managers should provide the new on job opportunities so that none of the employee feels
left out. The managers and leaders should assign the variety of tasks to all employees of
the particular department.
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CONCLUSION
In accordance with the report, proper management of operations within the business functioning
is very necessary. Utilisation of resources plays an important role in the operation of the proper
management. An organization should provide motivation, morale boosting by appreciating and
giving feedbacks of the assigned task as well as other benefits in terms of increments,
promotions and other benefits. In brief, to increase the productivity and effective decision
making, an employee and manager relationship should be maintained. The report also focuses on
the selection of skilled and qualified managers and leaders to take the organisation to its next
level. In Clancy Consulting, managers and employees make a healthy relationship in order to
perform effectively in the business environment. It also focuses on using meeting the needs of
the customers by using appropriate tools and techniques.
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REFERENCES
Books and Journals
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Conger, S., 2015. Six sigma and business process management. In Handbook on Business
Process Management 1 (pp. 127-146). Springer, Berlin, Heidelberg.
Dennis, P., 2016. Lean Production simplified: A plain-language guide to the world's most
powerful production system. Crc press.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
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scheduling, and controlling. John Wiley & Sons.
Krajewski, L.J., Malhotra, M.K. and Ritzman, L.P., 2015. Operations management: processes
and supply chains. Pearson.
Kuhn, K.M., 2015. Selecting the good vs. rejecting the bad: Regulatory focus effects on staffing
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McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and leadership
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Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of transformational-leadership
style and management control system on managerial performance. Journal of Business
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Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Senge, P., Hamilton, H. and Kania, J., 2015. The dawn of system leadership. Stanford Social
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