M&S: Analysis of Leadership, Management and Operational Strategies

This report provides a comprehensive analysis of leadership and operational management, using Marks & Spencer (M&S) as a case study. It begins by differentiating between managers and leaders, outlining their respective roles and functions within an organization. The report then delves into various leadership theories, including situational, system, and contingency leadership, evaluating their strengths and weaknesses and how they are applied in the context of M&S. The report also examines the impact of external factors on the business environment, decision-making processes, and employee engagement. Furthermore, the report explores operational management approaches, such as lean production and just-in-time, used by M&S. The analysis includes recommendations for improving leadership and operational strategies to address challenges like increased competition and changing market demands. The report concludes with a summary of the key findings and suggestions for enhancing M&S's management and leadership practices.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Overview of the company................................................................................................1
1.2 Comparison between a manager and a leader..................................................................1
1.3 Differences between leadership roles and managerial functions.....................................3
1.4 Functions of managers and role of leaders in various situations......................................3
1.5 Implement different theories and models of leadership...................................................4
1.6 Strengths and weaknesses of different theories................................................................4
1.7 Conclusion and recommendations....................................................................................5
TASK 2............................................................................................................................................6
2.1 Operation Management and approaches..........................................................................6
2.2 Roles and responsibilities of managers and leaders.........................................................7
2.3 Value and importance of operations management...........................................................7
2.4 Evaluation of the effectiveness of managers and leaders.................................................8
2.5 Business environment factors that impact on decision making and operations management
................................................................................................................................................9
2.6 Critical evaluation of the application of operations management..................................10
2.7 Conclusion and suggestion.............................................................................................10
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management and leadership are the two main vital aspects of a company's business
environment. These components aids firm in utilising resources as well as achieving targeted
goals in certain period of time. In this context managers and leaders use various strategies and
models of management to enhance performance of business (Rastegar, Fotuhi-Firuzabad and
Zareipour, 2016). This present report is based on importance of management and operations in a
firm by evaluating different types of leadership and managerial skills. M&S Company of UK is
taken for this evaluation which deals in retail sector. It is a multinational enterprise which serves
clothes and luxury food products to customers as per their demand. Different types of roles of
leaders and functions of managers are given in comparison way as well as how the same is
applied on various situations of organisation are also discussed. Further, this essay is also
explained the major impact of external factors on business environment.
TASK 1
1.1 Overview of the company
Operational management in a company is mainly concerned with organising, designing
and controlling entire process of production. In addition to this, with change in demand this
department also redesign operations of business related to manufacturing of products or services.
This would help in completing demand of marketplace so that firm can gain competitive
advantages (Wong, Boon-Itt and Wong, 2011). In context with M&S, this firm was founded by
Michael Marks and Thomas Spencer in 1884. Currently it has more than 980 stores in UK and
other countries where near about 84,000 workers are working. Therefore, to manage this large
working organisation, manager and leader's workers carry out various functions. In order to
reduce cost of production and administer entire process of operations, M&S introduce a flat
organisational structure in business. It consists limited levels of management among level of
administration and front-line workers. Through this, managers can encourage employees in
taking participation in decision-making activities of company as there are no level of
management between them. In addition to this, it helps in making positive environment at
workplace as well as enhance effective communication among people associated with business.
1.2 Comparison between a manager and a leader
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Generally, role of leaders and functions of managers are quite looking same but there are
many difference among them which can be illustrated in following manner:-
Basis Leaders Managers
Purpose Leaders in a firm work on
main purpose i.e. to influence
people who are working in
group on same task to give
best efforts so that effective
outcomes can be obtained.
In place of this, managers used
to analyse behaviour of people
on individual basis and provide
them proper working
environment. This would help
in getting high commitment of
them.
Vision It is main responsibility of
leaders to share clear vision
with employees and develop
strategies through which they
can work in right manner (Wu
and Pagell, 2011).
While managers take
responsibility to formulate
strategies as per concern with
benefits of workers which aid
in getting support of them in
achieving set mission on time.
Style As there are many styles of
leadership present like
participative, autocratic,
laissez-faire and more. Among
them leaders of M&S use
mostly democratic and
delegative style of leadership
mostly as per situation occur at
workplace.
On the other hand managers of
this firm use autocratic style of
leadership mostly in order to
impose policies and strategies
on workers so that they can
perform as per demand of
business.
Focus While leading team, leaders
focus mostly on members.
Managers focus more set target
of organisation and formulate
strategies accordingly to
complete it on time.
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1.3 Differences between leadership roles and managerial functions
Managers in an organisation take various responsibilities in order to manage entire
process of workplace by formulating different policies and strategies. They distribute roles and
responsibilities of business among workers as per their skills and abilities so that targeted goals
can be completed on time (Slack, 2015). Similarly, leaders also play an effective role in
enterprise, they lead team-members in a specific direction and give proper guidelines to them in
order to right work.
1.4 Functions of managers and role of leaders in various situations
It is main responsibility of managers and leaders to identify major problems in business
and techniques through which such issues can be resolved. As currently, in M&S various
problems are arise like less sales performance, decrease in consumer base and more due to
presence of many competitors at marketplace. It affects sales performance, productivity and
profitability of business. Therefore, to cope with this problem, it is necessary for managers to
introduce change in system and operations of an organisation. Some situations where leaders
and managers play different-different role are stated as below:-
Decision-making Process: It is an important activity in business management in which
managers are used to take important decision related to change in various aspects of organisation
(White, 2016). In this process, leaders should concern more on how these alteration impact on
working environment and resources. To reduce these impacts, managers use various approaches
like inviting employees in decision-making process, organising meetings to evaluate their views
and opinion and more for taking right decision. While leaders in this situation are needed to
make proper interaction with workers and discuss with them about necessity of changes so that
contribution of them can be gained.
Employee engagement: It is also known as workplace approach that based on trust, two-
way communication and integrity among employees. Through engaging employees in group
task, chance of business success also enhance. Therefore, to improve employee engagement,
managers pay high attention on five psychological aspects that are autonomy, connectedness,
safety, expertise and purpose of business. Through this, they can provide good and safe working
environment to workers that high retention of them can be gained. Similarly, in employee
engagement leaders are used to foster a sense of solidarity and openness among employees. They
also encourage to work in collaboration so that better outcomes can be obtained in business.
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1.5 Implement different theories and models of leadership
As trend of marketplace is changing at rapid rate which demand a firm to manufacture
more innovative products. So, to create modification in business, operational management of a
firm used to redesign business structure and formulate new strategies. It would help in
conducting business activities as per trends of marketplace. But creating changes in workplace
majorly affect working system and human resources (Subramanian and Ramanathan, 2012).
Therefore, this would arise various problems in working system of organisation. In context with
M&S, various problems are occurred on daily basis at its organisation. To deal with them, its
managers use different-different theory of leadership. Some leadership theories that help
managers of operational management to gain sustainability of business:-
Situational leadership: This theory of leadership allows managers of a company to
change their style as per situation. As currently, M&S face various issues like due to similar
service and price strategy therefore, it needs to create product differentiation. Therefore, for this
process, managers are required to formulate new strategies as per current market situation and
introduce new technology in business.
System leadership: This theory is mostly used by companies to perform activities of
business in proper manner. (Sodhi, Son and Tang, 2012). In addition to this, it also use to
change working procedure of managers and force them to make some improvement in strategies
and management. In addition to this, leaders are needed to concern more on adopting effective
style of leadership like autocratic so that new strategies and policies can be executed in proper
manner. For making new products, operational management of M&S need to introduce change
management in which this theory of leadership give efficient result.
Contingency leadership: This theory assist managers and leaders to identify most
appropriate leadership style first as per situation. In context with M&S, this firm wants to launch
business in other sectors also which can impact on business in both positive and negative
manner. Therefore, using contingency theory of leadership, managers can make policies as per
current situation of marketplace. In addition to this, it also required to give training to employees
so that they can work in required manner.
1.6 Strengths and weaknesses of different theories
Theories Strengths Weaknesses
Situational leadership This theory helps managers in As this theory focuses on
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recognising performance of
employees so that quick
decision can be made in terms
of assigning duties to them. It
helps in achievement of short-
term goals as well.
short-term goals only so it fails
to give better efficiencies of
business related to long-term
goals.
System leadership This theory helps a firm in
making improvement in
management as well as
developing strong policies by
concerning on demand of
business.
This theory fails in recognising
performance of employees as
well as force them to adopt
new working environment.
Contingency leadership Gaining training under
supervision of experts help
employees in enhancing their
knowledge and gain new skills
as well.
Due to frequent change in
working environment, leaders
are needed to adopt autocratic
style of leadership which may
appear inconsistency and
insincerity of them.
1.7 Conclusion and recommendations
According to view points of Wong, Boon-Itt and Wong (2011), it has evaluated that to
deal with different problems of business, it is necessary for managers and leaders to apply
different leadership style. In context with M&S, due to intense competition and entry of new
competitors, this firm needs to produce more products like making available brands of other
companies in stores. In addition to this, in food sector introduce more variety of eatables. For this
achievement, it needs much support of employees to carry out business activities. According to
views of Christopher (2016), it has estimated that system leadership theory refers to best theory
for dealing with different situations of a company. It helps in formulating effective strategies
through which managers can resolve issues arise in business on regular manner more easily. This
would also aid in improving sales performance of business as well.
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TASK 2
2.1 Operation Management and approaches
Operations are considered as one of the major functions in a company in which managers
and leaders perform different-different roles to manage workplace. It includes formulation of
strategies, product design, production planning,inventory control and more. In order to manage
operational process of various stores of M&S, management and operational department of this
firm use various approaches like lean production, just-in-time and six sigma. Through just-in-
time approach, managers can control inventories and stock as well as make available them in
various stores easily on time (Role of operational manager. 2017). In addition to this, through
lean production, present firm can minimise wastage and utilise resources which helps in
increasing efficiencies of production. While six sigma process aids in reducing risk of business.
Thus, these approaches of management aid M&S in achieving targeted goals and objectives in
successful manner. Importance and procedure of these approaches behind increasing efficiencies
of production can be demonstrated in following way:-
Six Sigma Approach: It is an effective tool of management which helps operational
managers of M&S in reducing occurrence of errors i.e. ineffective decision-making process. It
includes DMAIC process i.e. Define, Measure, Analyse, Improve and Control which aids in
minimising risk of failure that may happen due to inadequate decision taken by management. In
addition to this, it also assist managers in identifying as well as analysing problems which can
create barriers while implementing strategies. Thus, through this approach operational
management of M&S becomes able to increase efficiency of production level by reducing
defects. As currently in this company, the main problem arise is decreasing sales performance
due to poor quality of products or services. Therefore, using six sigma approach, managers can
reduce the errors and improve the quality of products.
Just-in-time: This approach is also termed as inventory management system which use in
reducing unnecessary burden of stock. The main objective of a company behind using JIT
approach is to minimise inventory costs and increase turnover of same. As M&S is one of the
largest retail firm in UK which has various stores worldwide. Therefore, operational managers of
this company face various issues in carrying out large inventories. In addition to this, it also
intakes huge costs to store them in proper manner (Fayol, 2016). Therefore, by using JIT, they
becomes able to synchronise delivery of material and manufacturing process. This system aid
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M&S in controlling its inventory costs by providing adequate amount of products in stores as per
demand of customers.
Lean Production: It is the most essential factor of management which helps a firm in
reducing wastage as well as cost of production. Thus, through this approach, managers of Marks
and Spencer can determine activities by which wastage can be reduced. It helps in constructing
process of production which starts from designing process to manufacturing. Through this
system, M&S can increase efficiencies of production process as it helps in optimum utilization of
resources available in proper manner. Through this process, managers can utilize limited
resources like capital, labour and more more adequately.
2.2 Roles and responsibilities of managers and leaders
Role of leaders:
 In increasing efficiency of management, the main role of leaders is to provide a clear
vision to employees i.e. to offer best quality of products as per preference of customers.
They should inform people at workplace in what manner work has to be done so that
better products or services can be delivered. Leaders are used to judge performance level of each employee and develop strategies
through high commitment from them could be achieved.
Role of managers:
 In operational management, managers play an effective role by taking entire
responsibilities of managing, controlling as well as directing business activities. They
provide resources to other departments so that functions can be carry out in desired
manner.
 Main responsibility of managers in operational management is to make ensure that
approaches whether applied in operations are appropriate..
2.3 Value and importance of operations management
Operational management is an important function of a company which manufacture
products, manage and maintain quality as well as creates services. In this regard, managers are
required to formulate strategies and day-to-day production process so that demands of customers
can be completed in proper manner. Under this department, operational managers are required to
possess ability for analysing running situation and find out best measures through which existing
problems can be resolved. It will be helpful in improving effectiveness and efficiencies of
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manufacturing process (Fang and et. al., 2012). In case of M&S, it is one of the leading retailers
of UK which more than 21 million of customers are used to come at stores in a week. In order to
complete demand of customers, this firm has 2000 suppliers around the world. Operational
management of this company use various approaches and style of leadership to increase
efficiencies of production. By managing operations in systematic manner, managers and leaders
help M&S in increasing its profitability. For this process, they used to allocate roles and
responsibilities as per skills of employees as well as help them in completing their task on time.
Along with this, for manufacturing best quality of products, managers provide adequate training
program to workers also so that chance of defective items can be reduced.
Importance of operations management for M&S are:-
 This department of M&S focuses more on minimising operational cost in order to
enhance overall profitability for an organisation.
 In addition to enhance sales performance, managers in this division also concern on
producing high quality of products and make them free from defects.
 Operational management is considered as an integration of three main functions of a
company that are marketing, finance and human resources. In this context, this
department provide resources to other division of company as per their requirement.
 In an organisation, nearly about 60% of employees are working in operational
department. Therefore, it increases strength of such company and makes them able to
give a high competition to rivals. As currently, there are 85,000 employees in M&S, out
of them more than 50,000 workers are working in operational management of this firm.
 In increasing efficiencies of operational management, main role are played by managers
and leaders (Dineshbabu, Thomas and Radhakrishnan, 2012). They work in collaboration
to enhance performance level of business and made products according to need and
demand of customers.
2.4 Evaluation of the effectiveness of managers and leaders
Role of manager for improve efficiencies of operational management:
 Manager in management and operation, are used to set effective communication among
people who are associated with business.
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 In order to gain best efforts from employees, managers in this division provide necessary
training and development program so that it helps in increasing abilities and knowledges
of workers . Manager are used to assign task to workers as per skills and abilities so that improved
tasks could be carried out resulting in attaining of organisational objectives.
Role of leaders for improve efficiencies of operational management:
 Leaders have possessed abilities to influence people towards achievement of business
goals. When there is a high demand of customers, they used to encourage workers to
work hard so that the same can be fulfilled as per their expectation.
 They used to track records of employees in order to evaluate who are capable more to do
a special task so that defect free services can be provided.
 They also provide proper guidance and clear vision to people at workplace which helps in
attaining targeted goals in predetermined time .
2.5 Business environment factors that impact on decision making and operations management
Some external factors present in business environment given as below:-
Innovation and Competition: Managers of M&S are needed to explain production
techniques and costs used for the same while developing an operational plan (Aliahmadi, Sadjadi
and Jafari-Eskandari, 2011). But any change in technology at marketplace creates a large impact
on decision-making of business like it can affect profitability in both negative and positive
manner. As it demands to make innovative products from a company. Therefore, they need to
redesign operational plan again. Similarly competition also affect their decision which force
leaders to change their style of leadership also.
Government Laws and Legislations: Companies must require to concern more on taxes,
health care mandates as well as requirement of various agencies who oversee their activities
related to business. In addition to this, various laws and regulations which are established by
government of a country also impact on decision making of management. It includes Health &
Safety Law 1974, Equality Act 2010, Trade laws and more. Therefore, it is mandatory for
managers and leaders to consider these laws while making decision to carry out business
activities adequately. They should introduce negotiation skills through which trading process of
M&S can be done as per conditions.
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