Analysis of Leadership, Management and Operations in the Industry

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This report provides a comprehensive analysis of leadership and management within the context of industry operations, with specific focus on ASDA. It begins by differentiating between leaders and managers, outlining their respective roles and responsibilities. The report then delves into the practical application of these roles in various workplace scenarios, such as managing labor turnover, resolving employee conflicts, and improving productivity. It further explores different leadership theories, including situational leadership and systems theory, evaluating their strengths and weaknesses. The report also covers key approaches to operation management and examines the importance of effective management in achieving organizational goals. A PESTLE analysis of ASDA is included to provide a real-world context. Overall, the report offers valuable insights into the effective management of industry operations, providing practical strategies for enhancing efficiency and achieving organizational success.
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Understand Management and
operations in Industry
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Contents
INTRODUCTION...........................................................................................................................2
LO 1.................................................................................................................................................3
P 1 Difference between Leaders and Managers ..........................................................................3
LO 2.................................................................................................................................................4
P2 Roles of leaders and functions of manager applied in different situations.............................4
P3 Different theories of leadership along with strengths and weaknesses..................................6
LO 3.................................................................................................................................................7
P 4 Key approaches to operation management and role of the leaders and managers................7
P 5 Importance and value of operation management...................................................................8
LO 4...............................................................................................................................................11
P 6 PESTLE Analysis of ASDA-..............................................................................................11
CONCLUSION ............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Operations management is the administration of business practices to create the highest level of
efficiency possible within an organization. It is concerned with converting materials and labor
into goods and services as efficiently as possible to maximize the profit of an organization. It
involves planning, organizing and directing day to day tasks in order to achieve daily tasks. It is
responsible for the maintenance and management of the organization of daily goals. ASDA
Stores Ltd trading as ASDA, is a British supermarket retailer, headquartered in Leeds, West
Yorkshire. The company was founded in 1949 when the supermarket owning Asquith family
merged with the Associated Dairies company of Yorkshire. Besides its core supermarkets, the
company also offers a number of other services, including financial services and a mobile
phone provider that uses the existing EE network. This report covers questions such as
Difference between Leaders and Managers, roles of leaders and functions of manager applied in
different situations, Different theories of leadership along with strengths and weaknesses, Key
approaches to operation management and role of the leaders and managers, PESTLE Analysis of
ASDA, importance of operation management.
LO 1
P 1 Difference between Leaders and Managers
Basis Leadership Management
Definition Leadership is concerned with a skill
which helps to motivate people so
that they can get the work done and
achieve the goal. It influences other
people to follow the direction given
by them. They also play a role to
prepare others and inspire them. By
effective communication they share
Management is the function which
helps to maintain the balance and
coordination in the company so that
they can easily achieve their desired
objectives. They are the in charge of
some operations assigned by the
company. They control the factors of
risk which are involved in the
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their ideas and by their set of skills
they make other people follow their
direction.
assigned project to them. So that the
company can easily and risk free
attain their goals.
Risk ASDA follows a leadership theory
which derives them to never give up
and keep on trying out new things
even if they don’t get success
because they know with their
experience that sometimes it is
possible that their outcome won’t be
successful that does not mean they
will give up. They will keep on
trying so that they can achieve
success for the company.
Management of ASDA have a job to
analyze the risk which is involved in
any situation and figure out a way to
minimize the risk. So that whatever
moves the leaders of the company
take will increase the chances of
getting successful results.
Management controls the problem
instead of embracing them and
creating a mess for the company.
Relationships and
structure
Leadership theory helps to follow
the instructions and vision so that
the company can maintain the
relationship with their clients. They
also spend their most of the time
with them so that they can earn their
trust and work according to their
vision in order to deliver them their
expected outcome.
Management of the company make
sure to make a structure so strong
that they can achieve their goals.
They analyze all of the possibilities
so that they can attain the expected
outcomes. They enable a proper
coordination with the individuals in
order to achieve the objectives of the
company.
Authority Leadership has the authority to take
major decisions for the company.
They are considers to be as
transparent and authentic. (Huq,
Chowdhury and Klassen, 2016)
Management of the company have to
follow the instructions and directions
which have been instructed by the
leadership theories. They are not
allowed to take any major decisions
on behalf of the leaders for the
company though they have some
authority to take decisions which are
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for the lower lever of management
such as appointing change, hiring or
firing employees, look out for
professionalism in the company etc.
Vision and Goals Leadership helps in bringing change
as they work on building a vision for
the company and inspire the
employees to convert that vision into
reality. They have the power to think
beyond the level of employees. They
trust on the teams which are
performing on a higher level for the
company as they are the ones who
help the company achieve their
goals.
Management of the company works
according to the vision of the
leadership theory and on the basis of
it they set the goals of the company.
They control the factors or situation
that will affect the vision,
profitability and productivity for the
company. (Dehran, Agrawal and
Midha, 2018)
Management by Objectives-
It is a model of strategic management which helps ASDA to improve their performance
by aiming clearly on the objectives and it is mutually consented by both employees and the
management.
Behavioural Theory-
It helps the company to understand the behaviour of humans by analysing the
problems in the situation or in the environment of individual. Company must be aware of the
experience of the employees.
Classical Management Theory-
This theory is based on the values and beliefs that workers only have needs which
are economic and physical. This theory is not concerned with the satisfaction of the job that the
employees are getting by the company instead it focuses on aspects such as maximizing profit,
labour, taking decisions.
Functions of Management-
Planning-
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It is done to analyse the outcome of future and taking the decisions in advance so that
they can achieve success.. This aspect is solely concerned with what to do, when to do and how
to do.
Organizing-
This aspect of management is concerned with bringing together all the resources such as
financial, physical and human resources.
Controlling-
This aspect helps ASDA to check that if or not the company is making progress so that
they can achieve the objectives.
Directing-
This method includes elements such as motivation, leadership, communication and
supervision.
Contingency Theory
This theory is an organizational theory which ensures the company that for them there is
no any other option or best way available to lead or to take decisions. Internal and external
situation varies the course of action as they are dependent on them.
Transformational and transactional leadership-
In this theory the leader of the company works with teams in order to identify the change
which is needed to improvise. It helps in formulating a vision to so that they can make the
required changes.
Transactional leadership on the other hand states that leaders of the company
promote their team by punishments and rewards both. This theory is used for short term
motivation.
Action Centred Leadership-
This theory includes three elements of work that is developing the individuals, achieving
the task and developing individuals. It is mutually dependent and the prime focus of this theory
is those 3 elements.
Hard and Soft Leadership-
Hard leadership is consist of threats, negative motivation and fear it is a task oriented
theory whereas Soft leadership is consist of character, communication, charisma, persuasion,
courage and compassion. It is a people oriented theory.
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LO 2
P2 Roles of leaders and functions of manager applied in different situations
Leaders and managers both plays an important role in an organization. Manager and
leaders of ASDA have some abilities to use their leading and managing styles as per the
situation. ASDA is a British supermarket retailer and provide several products and services.
There are several situations occur in its workplace which are being managed by leadership and
management styles. Some situations in which leaders and manager plays a vital role are
described as follows:
Labour turnover: Labour turnover is the main problem and common situation that can
occur in any type of industry and organization. But it needs to be solved in an effective and quick
manner for taking competitive advantages (Reiche and et.al., 2017). Increased labour turnover
can create several problems for ASDA like decreased brand image, delivering of poor quality to
customers etc. In this situation, leaders and manager adopt their best style which can solve this
problem in an efficient manner. In this situation, leader tries to identify the main problem of
labour turnover and after identify the problem it tries to fit its style. Leaders motivate employees
by providing them guidance and support them in their task. When employees get proper
guidance then it decreases chances of errors and mistakes which increase their morale and
confidence level.
On the other hand, manager in this situation, provides rewards and benefits to employees.
Rewards is called the best way of motivating employees. Different employees have different
types of needs and when they feel that their needs are being satisfied then they are more likely to
live in an organization. Financial and non-financial benefits is the best way of reducing labour
turnover (Rothman and Melwani, 2017).
Conflicts among employees: Conflicts among employees is other main situation that can
occur in an organization. There are several reasons of conflicts such as lack of understanding,
workplace discrimination, communication problems etc. In this situation, leaders allocate work
in a team to employees. The main aim of adopting this method is to improve relationship of
employees. When employees work in a group then they interact with each other and shares their
feelings and skills. It improves engagement and solve the problem of conflicts.
Whereas, manager of ASDA implement open door policy with the main aim of making
all employees comfortable and creating a friendly working environment. When employees feel
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that there is someone who listen and give attention to their queries then they feel valued and
respected. They try to help the company in accomplishing their goals and help each other.
Poor productivity: Poor productivity is the main problem which can create several
barriers in the path of the success of ASDA. In this situation, leader provides effective training
and development opportunity to all employees. The main aim of training is to increase skills and
knowledge of employees. Increased skills help employees in performer activities efficiently
which increase their and company's productivity.
Managers in this situation focus on developing approaches that can help them in
improving quality of products. Some approaches in which manager invest are: total quality
management and lean manufacturing. Both approaches reduces wastes and improve production
process (Hassan, 2018).
So, from the above it can be said that, leadership and managers plays effective role in
different situations that occur at workplace.
P3 Different theories of leadership along with strengths and weaknesses
Leadership theories also plays an important role as it allows leaders to perform their roles
in an efficient manner as per the situation. Different leadership theories work as a guideline and a
framework for the company. Some leadership theories are described as below:
Situational leadership: Situational leaders are those who adopts their style of leading
like autocratic, democratic, transformational as per the workplace situations. He/she adjusts
his/her style and try to make fit in the situation (Meier, 2016). There are several strengths and
weaknesses of this style such as:
Strengths and weaknesses: The main characteristic of situational leadership is this type of
leaders understand needs of followers, tries to achieve trust of followers and have critical
thinking skills. On the other hand, it does not focus on long term needs as only focus on
immediate needs and in task oriented environment it can not be beneficial.
System: It is an interdisciplinary theory about the nature of the complex system.
According to this theory, leaders try to make an environment and a system where different
departments and level of employees can work together. The main aim of this theory and leader is
to improve relationship of employees and increase organizational productivity.
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Strengths and weaknesses: The main advantage of this theory is it makes all employees able to
adapt changes and also focus on accomplishing individuals as well as company's overall goals.
Whereas, it has some limitations as it is not a practical theory and sometimes lead ineffective
decision because it takes time to make this type of system. It is not suitable for small
organizations and does not define inter dependence nature.
Contingency: This theory of leadership states that leader's effectiveness is contingent or
depends upon his ability to match leadership style with the situation. It also states that there is no
particular theory that can be fit in all type of situations as leaders have to make their styles fit in
situations. An effective and contingent leaders is one who styles fit with workplace situations. It
also believes that the success of a leader does not depend only on his abilities as his success is
depends on his roles.
Strengths and weaknesses: The main feature of this theory is it is predictive in the nature and
give more attention on combination of styles and situations. It helps to manager in making
decision-making process more effective. On the other hand, it is complex and time-consuming
approach and is reactive in the nature. There is a lack of literature by which many organizations
do not prefer to use this (Oreg and Berson, 2015).
So, from the above described theories of leadership, it can be said that different
leadership approaches and styles can help ASDA in accomplishing its goals by adopting the best
style as per the situation of its workplace.
LO 3
P 4 Key approaches to operation management and role of the leaders and managers
Six Sigma-
This technique consist of set of tools so that company can improve their process. This
method was introduced by an engineer who was American named Bill Smith while he was
working in Motorola. This strategy helps ASDA to improve their quality of the output. It helps
the company to figure out the cause of defects so that they can remove them by minimizing the
variability in the process of manufacturing. It is based on statistical approach with a set of
methods for managing the quality. Company uses a sequence of step which have some value
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according to the target they have set. For instance reducing pollution for which ASDA has
already worked or reducing the cost, ASDA reduce the cost and pass it on to their consumers so
that they can satisfy them and increase their revenues. Apart from this Six Sigma also helps the
company to focus on the aspects such as attaining measurable and financial returns from the
output they have produced. It helps the company to emphasize on management in a passionate
manner and support the strategies of leaders. With the help of this approach company can clearly
make decisions as it keeps a checks on the strategies and evaluate them on a statistical approach
instead of making an false assumption which is essentially beneficial for the company. (Wu,
2016)
Lean Manufacturing-
This method helps ASDA to minimize the waste at the time of manufacturing
with the effect of taking consideration of the factor that does not let affect the productivity of the
company. This method states that in order to reduce the waste company must focus on factors
such as overburden on the labor or not taking the right measures in handling the work load of the
company. Company has to work according to the perspective of the customers in order to satisfy
them. This method states that company must add those things which adds value and reduce
everything else. Most parts of this process was derived by the Production System of Toyota and
because of their success. This has taken the attention of companies on this method. (Prevot and
et.al.,2017.)
Queuing Theory-
This theory is based on a mathematical approach which is the study of waiting in
lines. This model helps the company to predict the length and estimated waiting time of the line.
Most of the time this theory is considered as research of operations of the branch. The reason
behind this is that results are usually used when decisions of the business requires a service. With
the help of this model ASDA company connects the queues which are single to a network that is
routed. This is done so that company can achieve equilibrium and distribution in the network but
sometimes it is fundamental. Company has to understand the perception of the customers. Some
of them don’t visit the place if the line is too long. Some of them keep on switching between the
lines and some of them leave the line when they run out of patience. ASDA needs to think of
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these factors because at the time of sales there is rush and lot of people give up. Company has to
address these issues so that they can focus on serving more and more customers. (Avella, 2017)
P 5 Importance and value of operation management
It helps ASDA to achieve their goals and objectives. It helps in improving the productivity of
employees. If the company is successful in it then it will improve the goodwill in the market and
recognition of the brand. The manager will learn how to utilize the resources in a optimal
manner. Apart from this it will also help in motivating the employees of the company.
(Chirumalla, 2018)
There are some approaches that the company needs to keep in mind-
Total Quality Management and its principles-
This approach covers the aspect of whole organization with the
values which are core and putting the focus on continuously improving the quality of products
and services so that ASDA can meet the expectations of the customers. This approach states that
everyone in the organization plays a role irrespective of their level which means from top to
lower level of management all of them are involved in meeting the expectations of the customers
by improving the quality. (Radnor and et.al.,2015)
Principles-
Producing Quality Work-
It means that company takes up the measures and ensures that changes in the process must work
every time. ASDA train their employees on a continuous basis so that they can improve their
skills. Company also evaluates the products which are the most in trend with the customers. This
helps them to figure out which stock is needed to be maintained more. With the help of IT
department company checks that whether their clients are buying their products online or just
browsing the page. They also help the company to speed up and improve the content of their
website. (Moreira and Tjahjono, 2016)
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Focusing on the Customer-
This stage is involved with making the products and the services in a
manner specifically to satisfy the needs of the customer. Company needs to make the quality, the
attributes, their functions according to the perception of the customers. Marketing department of
ASDA spreads the word out to the prospective and potential clients. This department of ASDA
uses various tools such as texting, e-mail and social media. If they observe that they are not
gaining the attention of the people on retail as well as the online platform then the marketing
department and IT department will coordinate and communicate with the department of research
and development to make appropriate changes. (Song and Parola, 2015)
Strategic Approach to Improvement-
According to the needs of the customer ASDA ensures the quality and
service of the product. It involves even the raw materials that the suppliers provide must be of
good quality so that they can extract the products with good quality. The department of
purchasing monitors all the reviews from the customers from both the platforms and compare
them with the past records so that they can analyze the improvement. (Kumar Mangla,
Bhattacharya and Luthra, 2018)
Improving Continuously-
The company keeps an continuous eye and monitor all the aspects on a regular
basis so that they can figure out the ways which are efficient and effective for improving the
quality of the product. ASDA has assigned this job to their HR department to check that if or not
there employees are skilled or qualified. If they are skilled then company can easily maintain
their operations and make the improvements side by side. (Joglekar, Davies and Anderson,
2016)
Encouraging Respect and Teamwork Mutually-
It is necessary for ASDA to follow this principle because all the levels of
management from below to top are involved in the success of the company.
Just in Time-
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