Analysis of Leadership, Management, and Operations at ASDA

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This report provides a comprehensive analysis of leadership and management practices within ASDA, a British supermarket retailer. It begins by comparing the roles and characteristics of leaders and managers, highlighting their distinct functions and skills, and explores how they are applied in various organizational situations, such as labor turnover, poor product quality, and interpersonal conflicts. The report then delves into different leadership theories and models, including situational, system, and contingency leadership, explaining their advantages and disadvantages in the context of ASDA's operations. Furthermore, it examines key approaches to operations management and the roles of leaders and managers in optimizing these processes. The report also emphasizes the importance and value of operations management in achieving organizational goals and identifies how various business environmental factors impact operations and the decision-making process, using PESTLE analysis. The report concludes with a summary of the key findings and their implications for ASDA's future performance. The report provides an in-depth look at leadership and management at ASDA, including strategies and theories.
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Management and
Operations
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 comparison of Different roles and characteristics of a leader and a manager.......................3
TASK 2............................................................................................................................................6
P2 How roles of leaders and functions of manager applied in different situations.....................6
P3 Different theories and models of approach including situational, system and contingency
leadership....................................................................................................................................7
P4 Key approaches to operations management and roles of leaders and managers in them......9
P5 Importance and value of operation management in accomplishing goals...........................11
P6 Business environmental factors that impacts on operations management and decision-
making process..........................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
Operation management refers an area which is mainly concerned with planning,
organizing and supervising the process of production and redesigning business operations for
improving quality of products (Nakamura and et.al., 2015). This study is based on ASDA which
is a supermarket retailer of British with having headquarter is in the England. This company was
founded in the year of 1949 by Peter and Fred Asquith. It has approximate 633 locations where it
serves with the help of around 165,000 employees. This present study is about to talk the
importance of leaders roles and functions of managers in an organization. Leaders and manager
have different skills and characteristics but both play a critical role and help the company in
accomplishing goals. It will also show some effective approaches of operation management
which deceases wastes in the manufacturing process and improve quality which direct leads to
improve productivity. Further, this study shows benefits of operations management as it provides
customers satisfaction, reduces operational costs etc. Different environmental factors also
impacts on the operations and performance of the company which is analysed by PESTLE
analysis tool.
TASK 1
P1 comparison of Different roles and characteristics of a leader and a manager
Leader: A leader is an individual who guides his/her followers and motivate them towards
accomplishing company's goals for which he works. He/she possesses several skills by which
he/she handles several situations of the company in an efficient manner.
Manager: A manager is also an individual who controls and monitors all organizational
activities as well as human resources.
Different between roles of leaders and manager
Roles of leaders Roles of managers
Leaders are mainly relationship oriented so,
they improve relationship with employees.
Manager are task oriented so, they focus on
managing the system and process of the
company (Huemann, Ringhofer and Keegan,
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2019).
Leaders take risks rather avoiding them and
consider them as a step for success of the
company (Sverdlik, Oreg and Berson, 2019).
Manager control risks or minimize them rather
taking them.
Different between characteristics of leaders and manager
Skills or characteristics of leaders Characteristics of managers
Leaders have ability and skills to guide
employees in any type of project.
Managers do not guide employees but has an
ability to set plan and goals as a framework
and manage all activities.
Leaders have positive attitude which makes
him/her able to work under pressure and
motivate employees (Qadach, Schechter and
Da’as, 2017).
Manager have ability to manage all activities in
timely manner which reduces work load.
Functions of manager
Manager of ASDA plays several functions which helps it in managing all activities in an
efficient manner. Some functions of manager of ASDA are described below:
Planning: Planning is the first step as for completing tasks and activities by employees,
there is a requirement to have an effective planning. In this step and as per the plan, employees
are told that what they are required to do actually.
Organizing: In this step, manager play a role and oversee that if employees are
performing all activities as per the plan or not. They organize all works of the company.
Directing: In this function, manager help employees in providing direction in which they
need to work for improving productivity (Pakdil and Kurtulmuşoğlu, 2017).
Controlling: It is the last but not the least function as in this function, manager of ASDA
control activities which are not according to the plan. It may be related to budget, resources and
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activities. If manager finds any gap between planning and performed activities then it takes
appropriate actions and measure to reducing gaps.
Functions of leaders
Get the work done: The main function of leader is to get the work done from employees
by motivating and providing training to them. For performing this function, leader apply action
centered approach which helps them out in getting work done. With the help of this approach,
they do not only get the work done but also build an effective team and develop their skills.
Direction and motivation: The other function and role of leader is to motivate and direct
employees as per their needs and demands. In this function, leaders use transformational style of
leading. As per this style, leaders encourage and motivate employees with the main aim of
making innovative working environment for the future success (Melior and et.al., 2019).
Hard management skills
There are several hard management skills which can be taught to others and are easy to quantify.
There are several ways by which managers and individuals can learn hard skills. Some hard
management skills are:
Proficiency in different language: Having a proficiency in different languages is vital for the
manager. ASDA employs diverse workforces which has different cultures and languages so, it is
important to have knowledge of different languages and proficiency. They can learn and teach
this skill.
Soft leadership skills
As compare to hard skills, soft skills include all those skills which are harder to quantify.
Leaders increase these skills by communicating and interacting with others.
Flexibility: Flexibility means ability to adapt situations and make themselves able to
perform as per the situation. This skill cannot be taught but can be increased while working and
experiences. An effective leader has an ability to change himself as per the situation and adapt all
type of situations without getting influenced.
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TASK 2
P2 How roles of leaders and functions of manager applied in different situations
ASDA is a popular retailer and has expanded its business in many locations. With the
increasing numbers of locations and employees, this retailer has to face several problems and
challenges. Different problems and organizational situations effect the performance and
decision-making process of the company. But leaders and managers of this company adopt
different styles as per the situations and solve them efficiently. Some situations and roles of
leaders and functions ODF manager in that situations are described below:
Labour turnover: Labour turnover is a common situation and problem occur in ASDA
which impacts on the productivity and sales of the company. In this situation, leader tries out to
identify reasons of employees which leads them to leave the company. After identification of
reasons, they adopt style and become relationship oriented (Ehrhart, 2015). The main reason of
labour turnover in almost cases is lack of motivation and work pressure. In both type of reasons
there is a requirement to improve relationship rather than completing tasks. So, by implementing
this approach, leader motivate, support them and improve loyalty.
On the other hand, management tries to provide some benefits as a motivation to them for
making them feel comfortable and satisfying their needs. In this situation of ASDA, they
implement and makes an effective use of Chaos theory. As per this theory manager puts more
pressure and emphasizes on adaptability and entrepreneurial creativity. There are several factors
that cannot be predicted but impacts on the performance (Goulielmos, 2019). So, for dealing
with that factors and making employees able, it is important to use this theory and motivate
employees.
Poor products quality: Poor quality of products and services also happen due to lack of
concentration of activities and lack of skilled workforce. This situation impacts negatively on the
brand image of the company. In this situation, leader makes an effective use of system
leadership style. As per this style, all employees are allowed to work collaboratively and at the
same level or system. When employees work in a team and at a same level then it reduces
chances of errors and mistakes. It also improves their relations which decreases conflicts as well.
In the context of manager of ASDA, management is being done by management by
objectives strategy. As per this strategy, manager defines objectives and policies to employees
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by which employees have clear guidance as what they are required to do. This goal setting and
an effective action plan encourages employees to work with concentration (Islami, Mulolli and
Mustafa, 2018).
Interpersonal conflicts: Interpersonal conflicts is other main problem and organizational
situation that occur due to several reasons. Due to misunderstanding, lack of satisfaction,
ineffective working environment leads create this situation. In this situation, leader use
situational leadership style. As per this style, they adopt their leading style as per the situation
and after knowing reasons of conflicts they motivate them. For making employees feel motivated
they allow them in decision-making skills and provide effective training to them (Hawkins,
2017). It increases their skills and loyalty towards the company by which they try to avoid some
situations of conflicts.
Whereas, manager in this situation provide additional services and benefits to employees.
They support each employee and give opportunity to them to communicate directly with the
manager and share their views and queries. After listening carefully and providing open door
policy, they make them feel comfortable and solve problems.
P3 Different theories and models of approach including situational, system and contingency
leadership
Leadership and management are key for the success of an organization. In the context of
ASDA, it can be said that leaders and manager have an ability to adopt their different styles and
use theories by which they can help the company in expanding business and increasing revenue.
There are several leadership approaches and models by which ASDA can make itself beneficial
and compete with its competitors such as Tesco, Walmart etc. Some approaches are:
Situational: Situational leadership refers flexible type of leadership. As per this
approach, an effective leader and manager is the one who adapts situations and changes his/her
style of leading as per the situation. They do not affect from different situations and perform
his/her roles in all types of situations by using appropriate style (Thompson and Glasø, 2015).
For example: If there is a lack of skilled workforce in ASDA and they are not able to take
decision. So, in this type of situation, an effective and situational leader adapt autocratic
leadership style because as per this style, employees are not given opportunity to take participate
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in decision-making process. So, as per their own skills, leaders take decision in a timely manner.
On the other hand, when there are skilled workforce and enough time then leadership change
his/her style and implement democratic style and give opportunity to employees in decision-
making process.
Advantages
It boosts employees motivation by increasing awareness about organisation situations.
It can beat ambiguity.
Disadvantages
It focuses on immediate needs of the company and employees rather focusing on long-
term needs.
Employees resist changes due to continuous changes in situations.
System: System leadership refers a style according to which leader tries to create a level
and stage where all departments and levels of employees can work collaboratively and help each
other in their work (Arena and Uhl-Bien, 2016). By implementing human theory in this style,
they make this approach more effective and successful. There are several benefits of this model
as, ASDA can improve relationship with employees and decrease labour turnover. It also
increase innovation at working place because different skills of employees work in this system.
Advantages
The main advantage of this theory is it increases adaptability skills of all employees as
they work collaboratively at one stage and system.
It improves employees morale and loyalty which decreases labour turnover.
Disadvantages
It is a rigid as some changes in the system and environment impacts on the whole
organization and all working departments.
It is time-consuming as compare to other because it requires continuous monitoring and
controlling.
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Contingency: Contingency theory is as like a situational leadership but having some
differences. This model believes and claim that no particular style is beneficial and suitable in all
type of situations. Leader have to apply their style of leading into the right situation and as per
the organizational situations. According to this theory it is stated that there are mainly 2 types of
leaders who are task oriented and relationship oriented (Fiedler, 2015). In all type of situations,
leaders have to change their style as in some situations they need to become relationship oriented
and in others they need to become task oriented.
Advantages
This theory is dynamic in the nature which helps managers and leaders to increase their
decision-making skills.
It also helps company in designing organizational structure and plan the information
decision system.
Disadvantages
It is a critical approach as its suggestions are easy to change style but at the time of
implementing it becomes complex.
There is a lack support of literature by which many readers and people do not believe to
this and it is the reason of its image and unsuccessfulness.
P4 Key approaches to operations management and roles of leaders and managers in them
Operation management refers an administration and a type of management which is being
done by operation manager of an organization for creating the highest level of efficiency. The
main function of operations management is to convert raw materials and human resources into
effective services to increase profits (Formentini and Taticchi, 2016). To reduce wastes and
improve quality of products is the purpose of operation manager. There are several approaches
which can help ASDA in accomplishing this goal such as:
Total quality management: Total quality management is an effective approach of
operation management which is mainly responsible for reducing errors or mistakes in the process
of manufacturing and improving customer experience. By implementing this approach, ASDA
retailer can improve quality of its products and services in continuous manner. The main purpose
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of total quality management approach is to involve all parties in the production process and make
them able to improve quality of the final product (Tidholm and Larsson, 2019). There are some
principles of total quality management approaches by which, ASDA can make its successful
such as: customer focus, process approach, leadership, continuous improvement etc.
Roles of leader
The main role of leader in this approach and making this approach successful, they make
all employees able to take active participation in the manufacturing process.
They inspire, motivate and recognize contribution of efforts of all involved members.
Roles of manager
The main role of manager in this approach is to oversee performance of all employees in
implementing this approach successfully.
Six sigma: Six sigma is data driven and an effective operational management approach which is
mainly responsible for eliminating defects in any process. The main aim of implementing this
approach is to improve the process of manufacturing and other which can increase customers
satisfaction. Reducing variations can help the company in getting desired results and attract
wider range of customers (Borse and Attarde, 2016).
Roles of leader
Leadership plays an effective role in this approach as they invest in six sigma training for
awaring employees about the importance of this approach.
Communicating importance of this approach to all employees is other role.
Roles of manager
The main function of manager in six sigma approach is to makes sure that each member
understand corporate priorities.
Just in time: Just in time approach consider time and it is mainly focused on reducing time in
manufacturing process. For implementing this approach successfully, company needs to order
and receive materials only when they are required and reduces cost of extra inventory. There are
several benefits of implementation of this approach such as: company can fill up discharge and
empty some space of warehouse and can also decrease cost of inventory and can also prevent
itself from damages of extra inventory. The main aim of this approach is to minimize cost on-
overhead inventory.
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Roles of leader
The main role and function of leader in this approach is to develop individual's
contribution and change to customers service programs.
They also establish norms and guide them in solving problems faced in this approach.
Roles of manager
Manager's roles in just in time approach is to implement this approach successfully and
monitor that all employees are working properly.
They also monitor inventory as try to keep balance between demand and supply of
inventory.
Lean manufacturing: Lean manufacturing is a systematic method that focus on reduction of
waste in within manufacturing system without hurting and compromising quality of products and
services. Wastes which are being mainly generated by uneven workload and overburden, ADSA
focuses on reducing them with the main aim of increasing value of its products to attract
customers and reducing overall operational costs (Upadhye, Deshmukh and Garg, 2016).
Roles of leader
The main role of lean leader is to make sure that each member is contributing to
customers value and improve quality.
Leader also make employees able to take active participate in the process and adapt
changes towards management.
Roles of manager
Lean manager defines and services of products to customers and employees.
They monitor all processes and working of employees in this approach.
P5 Importance and value of operation management in accomplishing goals
Operations management plays an important role in an organization. By implementing all
effective approaches of operation management, ASDA retailer can make itself able to take
competitive advantages as well as become the market leader. There are several benefits of
implementing all approaches which are being discussed as below:
Process design: The main function and importance of operation management is making
an effective process design. Process design means to break down product into parts and make an
effective manufacturing process. For attracting customers, process design plays an important role
as it includes packaging and other elements which reduces wastes and improves quality. There
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are several approaches of operations management who helps operation manager in designing
process and improve quality.
Capacity management: Capacity management means to make balance between
demands and supply of orders and products by customers. To make an increment in the demand
over time is the main aim of capacity management in operation management. There are several
benefits which ASDA can take by an effective capacity management such as: improving
efficiency, mitigation of risks and increase agility. Roles of manager in all approaches of OM
support in getting this goal (Tseng, Lim and Wong, 2015).
Transformation of raw materials into finished goods: Operations management's
primary aim is to transform raw materials into final products in an efficient manner by reducing
wastes, costs and improving quality. There are several approaches like Six sigma and lean
manufacturing that are responsible to improve the process of manufacturing for getting
qualitative finished goods. So, it can be said that ASDA and manager of this retailer company
can provide customers satisfaction by this.
Inventory management: Managing inventory by controlling and overseeing demand as
per the requirements of ordered products. Just in time is an approach who focus on managing
inventory and raw materials. By inventory management, company can reduce cost over extra
inventory and also can space up warehouse.
All these approaches helps ASDA in accomplishing its goals which are described as below:
Increase productivity: An effective operation management and implementation of all
approaches aimed at reducing wastes, delivery of products on the time and improving quality.
All these factors help the company in improving overall productivity of the company. By
providing effective quality of products to customers, it can make them satisfy and improve its
brand image. It directly leads to improve productivity (Sparrow and Makram, 2015).
Customer satisfaction: Customers satisfaction is the key of the success of the company
and it can only be possible when an organization provides them satisfactory services. Customers
seek qualitative products at affordable prices. Along with quality management, taking care of
products quality, it can make sure for customers needs to be met. There is a system which
provides a system by which company can measure the effectiveness of services of the company
as well as analyse its position in the market.
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P6 Business environmental factors that impacts on operations management and decision-making
process
There are several factors of business environmental that directly and indirectly impacts
on the decision-making process and performance of the company. For reducing negative impacts
and making an effective growth it is important for the manager of ASDA to analyse them. Some
factors are:
CSR: Corporate social responsibility refers a model that helps an organization in
improving relationship with stakeholders, customers and the society. It makes them able to
become socially accountable. With the help of implementing CSR policy, ASDA can maximize
the shared value and positive impacts on the society (Gurung and Prater, 2017).
Culture: Cultures defines norms and ways of behaving and performing functions by the
company as it includes believes and behaviours. As per the culture of the company, manager
have to deliver their products and also treat with customers. ASDA follows hierarchical structure
that create communication barriers in different departments. So, it is important to focus on
implementing effective communication mode for making an effective decision.
Values: Values is critic and vital for the success of the company. Customers purchase
products and pay for getting value so, it can be said that it also affects the decision-making
process of leaders and managers. An individual's and company;s values defines and shows other
that how they perceive situations. It increases awareness of managers of the problematic state of
a system and appropriate informations relevant to the problem.
Ethics: Ethics also shows to other as how the company and its employees treat with
customers and handle situations. It also plays an important role for making success. Codes of
ethics need to be considered by the company or ASDA while making decision. For example: To
give equal opportunities to all members involved in the process, do not force them to give
suggestions and treating effectively are some codes of ethics (Golembiewski, 2017).
Sustainability: Sustainability means to expand business and perform all organisational
activities without hurting present as well as future resources of the environment. For becoming
sustainable and making the business sustainable, it is important for managers of ASDA to use
those approaches who can reduce wastes and improve quality of products. If they do not consider
sustainability as the main topic then they have to face several problems. In this context, leaders
and manager make aware to employees about the increasing importance of sustainability and
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push pressure on them to use appropriate approaches. It is also stated that for making an effective
decision and sustainable business, ASDA uses some approaches such as six sigma and lean
manufacturing.
Relationship with stakeholders: Stakeholders are those who invest something in the
company and have direct and indirect partner of the company. It includes all those people who
want company to make profit. In the context of ASDA, it is stated that customers, suppliers,
competitors, creditors are stakeholders. Relationship with all these stakeholders plays an
important role as it improves brand image of the company. ASDA depends upon customers to
gain profit and accomplishing its goals so, it is important for the manager and leaders of this
company to focus on satisfying customers' needs for keeping them with the company for the long
run (Madueño and et.al., 2016.). Employees also plays an important role as all activities of the
company are being played by them. So, it is a liability or responsibility of ASDA to analyse their
needs and motivate them by financial and non-financial rewards. Suppliers can greatly influence
on the income as how much it earns each year. So, it can be said that maintaining a good
relationship with all stakeholders can affect the decision making process in a positive manner.
CONCLUSION
From the above study it has been summarized that operation management played a vital
role in accomplishing goals of an organization. There are several approaches of operations
management which helped the company in attracting customers and sales. It has shows several
benefits of implementing total quality management, six sigma and other approaches as it reduces
wastes and give qualitative products to customers which give value and improve brand image. It
has also shown some differences between roles of leaders and functions of manager as they play
several roles in different organizational situations. In different situations like labour turnover,
conflicts poor quality and productivity, leaders play their roles like motivation, training to
employees, support in their work which are different from managers functions. Manager monitor
and implement policies for solving all situations. This study also discussed different leadership
styles such as: contingency, situational and system by which, leaders accomplished their goals
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and increase overall productivity. Lastly, this study has shown some business environmental
factors like political, economic, environmental and social that impacts on the performance and
productivity of the company. With the help of implementing PESTLE model, company has made
changes in its policies according to negative and positive impacts and made an effective
decisions.
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