Leadership and Management Report: Operational Management at Amazon

This report delves into the core concepts of leadership and management, using Amazon as a case study. It defines and contrasts the roles and characteristics of leaders and managers, exploring the application of various leadership theories like situational, laissez-faire, transactional, and transformational approaches. The report examines how leaders and managers contribute to employee engagement and conflict resolution within the organization. It then explores key approaches to operations management, including Six Sigma, lean production, and total quality management, and analyzes their impact on achieving business objectives. The report also assesses the factors within the business environment that influence operational management and decision-making processes. Overall, the report provides a detailed analysis of leadership, management, and operational strategies within the context of a major e-commerce company, Amazon.

Management &
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and compare the different roles and characteristics of a leader and a manager.........3
M1 Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts................................................................4
D1 Critically analyse and evaluate the different theories and approaches to leadership in given
contexts.......................................................................................................................................5
TASK 2............................................................................................................................................5
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.......................................................................................................5
M2 Assess and evaluate the strengths and weaknesses of different approaches to situations
within the work environment......................................................................................................7
TASK 3............................................................................................................................................7
P4 Explain the key approaches to operations management and the role that leaders and
managers play..............................................................................................................................7
P5 Explain the importance and value of operations management in achieving business
objectives.....................................................................................................................................8
M3 Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives...................................................................................10
D2.Critically evaluate application of operations management and factors that impact on the
wider business environment......................................................................................................10
TASK 4..........................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational
management and decision making by leaders and managers....................................................10
M4. Analyse how these different factors affect the business environment and wider
community.................................................................................................................................11
CONCLUSION..............................................................................................................................11
References......................................................................................................................................12

INTRODUCTION
Operations management refers to creation of high level of effectiveness in a company by
utilising resources of an business entity effectively and efficiently. Its main motive to balance
revenue generated in an organisation by its cost of production in order to maximise its
profitability (Benjaafar and Daskin, 2013). In this present report, the chosen organisation here is
Amazon which is largest electronic commerce computing organisation founded in 1994. It is one
of the largest internet retailer and operating its business activities worlwide. This report shows
roles and functions of managers, comparison between traits of leaders and managers, role of
leaders in accordance with different situations and also various leadership styles which are
essential to increase productivity of an organisation has been covered. The most important
assignment has also been covered .i.e. importance of operational management to achieve
organisational goals and objectives.
TASK 1
P1
Operations management is defined as planing, organising, controlling various business
activities with a motive to maximise profitability of organisation. It is a process of transforming
labours and materials into products and services, which helps in gaining competitive advantage
in business. Effective operational management will helps the chosen organisation Amazon in
ensuring maximum efficiency within organisation.
Leader
A leader influences its team members in achieving specified goals and objectives in
business environment. In this regard, Amazon leaders guide and motivate its employees
towards their aims and objectives, which leads in making efficient and effective workforce in an
business entity (Childe, 2011).
Manager
A manager is responsible to make effective business strategies with a motive to improve
overall performance of the organisation. In this reference, Managers of Amazon make effective
guidelines for its employees, in order to make competitive organisation in a business
environment.
Difference between role of a leader and a manager

Basis Leader Manager
Role The main role of a leaders is to
influence its sub-ordinates towards
achieving their aims and objectives. It
will helps Amazon in making effective
workforce in a business environment.
The main role of a manager is to make
effective business strategies for an
business entity. Effective managership
helps Amazon in retaining their
productivity for a longer duration.
Characteristi
cs
Leaders of an business entity always
try to take risk as they are dynamic
and also motivates its employees to
change in accordance with the
business environment. In this regard,
leaders will helps Amazon in creating
job satisfaction among their employees
A manager in an organisation is works
for measuring risk to control and avoid
uncertain problems. In this regard,
managers of amazon control and
monitor risk, which helps an
organisation in maximising its
profitability
Scope Leadership is an part of management,
thus its scope is limited as compared
to management (Drake and Spinler,
2013).
On the other hand, management is a
wider scope as it involves managing all
business activities.
Relationship Leaders of an organisation are
emotionally attached with its sub-
ordinates as they motivate and guides
them in achieving their aims and
objectives.
Whereas, managers of Amazon works
with minimum emotional attachment
with its sub-ordinates.
M1
The major difference between leaders and manager of the chosen organisation is that,
leaders works to motivate its sub-ordinates in achieving their goals and objectives. Whereas
managers of Amazon works to improve overall productivity of an organisation in a business
market. It is essential for Amazon leaders to have understanding of various leadership theories
like situational leadership, laissez faire and also for managers to have understanding of various
managements theories like administrative theories.

D1
Theories of leadership are essential for an organisation in order to develop strong and
healthy relationships with its sub-ordinates. In this regard, leaders of Amazon should choose
transactional and transformational leadership theories to motivate its employees toward their
aims and objectives.
TASK 2
P2
Leaders and managers play a crucial role in providing overall development of an
organisation. It is essential for leaders and managers of Amazon to execute their roles and
functions effectively in order to maximise performance of organisation. Roles and function of a
leader and a manager in different situations is discussed below:
(a) Employee engagement
Employee engagement refers to a situation in which employees feel comfortable and
motivated, while working in an organisation. It is essential for the chosen organisation Amazon
to develop effective employee engagement in their organisation in order to bring efficiency in
their business environment. It is essential for Amazon Managers to guide and motivate their
employees in related to the assigned them, which leads in creating understanding among
employees about their task (Griffin, 2013). It also helps employees in achieving their aims and
objectives in a competitive business environment. In regard to managers of Amazon, it is
necessary for them to formulate effective business strategies for their employees, which leads in
helping them in achieving their job satisfaction. It also helps an organisation in enhancing its
overall growth in a competitive business market.
(b) Conflict resolution
The situation of conflict among workforce of an organisation is not good in terms of their
productivity in a competitive business environment. In this regard, leaders and managers of an
organisation have their roles and responsibilities to create a healthy working environment in an
organisation. In this situation, leaders of Amazon should have to identify the reason behind
conflicts and try solve that issue between workforce. On the other hand, Managers of the chosen
organisation should try to solve the issue between groups by talking to them on a personal level.

It will helps an organisation in creating a effective workforce in a dynamic business
environment.
P3
(a) Situational leadership
This theory suggest that single leadership style is not suitable for organisation because
business environment is dynamic and it keeps changing. In this regard, it is necessary for
managers of Amazon to change their leadership style with the particular situations. It will helps
an business entity in gaining a competitive advantage in business environment. It is also
necessary for leaders of the chosen organisation to have ability and willingness to change its
leadership style in according to business environment. It will helps Amazon in choosing the
appropriate style that is best suitable for an organisation in accordance with their goals and
objectives (Ham, Hitomi and Yoshida, 2012).
(b) System leadership
This leadership style states that leaders have to create conditions in an organisation, so
that employees at all levels can work productively in accordance with their potential. In this
regard, it helps leaders of Amazon in predicting behaviour of employees working in an
organisation. This leadership style also helps employees of Amazon in realising their aims and
objectives. It helps an business entity in making necessary changes related to business
environment, which leads in enhancing overall growth of an business organisation.
(c) Contingency leadership
This leadership style states that effectiveness of a leader is based on its selected
leadership style related to a particular situation. In this context, leaders of Amazon can
accomplish effectiveness in their leadership style by satisfying two factors .i.e. the personal
leadership style and also a situation that controls a leader. In this regard, this style helps Amazon
in achieving their specific aims and objectives.
According to the above mentioned report, the chosen organisation Amazon is already
operating its business activities with situational leadership style that helps them in making
effective workforce and also in retaining their productivity for a longer run.
M2
(a) Situational leadership approach

In this leadership approach, leader of Amazon have to change their leadership style in
according to the changes which occurs in a business environment. There are some strength and
weakness of this leadership approach, which are described below:
Strengths
In this leadership style, leaders can change their leadership style according to dynamic
business environment (Hoi, Wu and Zhang, 2013)
 This leadership style is simple to understand and implement
Weakness
 It is difficult for leaders who are task oriented and also for the leaders who are
unable to implement changes in their leadership style
 This leadership style sometimes distracts leaders of an organisation in distracting
them from long term goals
TASK 3
P4
Operations management is an ongoing process that includes various processes like
planning, organizing and supervision processes that help business concerns in further decision
making for gaining higher rate of profits in near future. It is a multi disciplinary process if
spoken about its nature of business (Karnani, 2011). It is a delivery focussed process that ensures
that an organisation is able to successfully turn inputs into outputs by achieving efficiency in
working. Amazon is a multinational business concern that deals in delivering goods and services
to its customers. There are numerous key approaches to management such as :
Six Sigma: It is a statistical approach which works for removal or elimination of defects
and faults from products, process or service. Further it focuses on performance improvement. It
is a technique that uses statistical tools for reducing process variability. It is further divided
into two major types namely DMAIC and DMADV. Leaders or managers of Amazon take this
technique into consideration for evaluating performance of its employees.
Lean production: It is a major manufacturing method that uses systematic ways for
waste elimination that is continuously occurring within manufacturing processes. Lean as name
suggests means no excess so it only aims at minimizing cost of waste production. It also aims at

reduction of labour as well as waste of time used in few lengthy processes. Leaders use this
technique in Amazon to improve their working processes thereby reducing waste generation.
Total quality management: It is a continuous process of improvement used by Amazon
for improvisation of quality of its products as well as services by continuous evaluation. In this
process customers are used as a key factor for evaluation of goods and services. Leaders of
Amazon uses strategy, data and effective communication process and interlink quality and
working environment of Amazon (Parisio and Glielmo, 2013).
Role of leaders: Leaders set or provide a clear vision to its employees so that they can
understand clearly about future conditions of business in Amazon . They also help in employee
motivation and work towards fulfilling genuine desires and wants of employees. This increases
their efficiency. Also leaders guide their subordinates in achieving goals.
Role of managers: Managers are essential for a multilevel organisations like Amazon
which is delivering goods and services to its customers. A manager is liable to perform
functions like planning, organising, staffing, directing and controlling. Effective balance of all
above functions help managers in achievement of goals. Manager also performs interpersonal ,
and decisional role in Amazon.
P5
Operations management is an ongoing process that includes various processes like
planning, organizing and supervision processes that help business concerns in further decision
making for gaining higher rate of profits in near future (Pedrycz and Chen, 2015). It is a multi
disciplinary process if spoken about its nature of business. It is a delivery focussed process that
ensures that an organisation is able to successfully turn inputs into outputs by achieving
efficiency in working. It is improvement process that is used by Amazon for quality
improvisation of its products as well as services by using continuous evaluation process.
Operations management focusses on timely delivery of goods and services to its customers.
Importance of operations management is explained further in detail as follows:
Evaluation of progress: Achieving effectiveness in working processes of Amazon is a
tough task and entirely depends on manager's ability to get involved in understanding key
objectives given by top management of Amazon. After knowing the objectives it is necessary to
implement strategies and plans to achieve that objective. It helps managers to evaluate overall
performance of employees and organisation (Renz, 2016).

Scope of operations: Operations help any business concern in creating value of a
business and help company managers to achieve goals and its core objectives in given interval of
time. Operational activities help and ensure success of business. Scope of management
operations depends upon type and size of business. It helps managers in regulating speed and
managing quality of goods and services rendered.
Availability of resources: Resources includes finances or money needed by managers
of Amazon to perform their production activities. Operations helps managers in determination
and identification of all different resources and achieving targets. (Starr and Van Wassenhove,
2014).
These are few key importance’s of operations management that facilitate managers in
achieving goals and objectives of business.
M3
Leaders and managers are important people in Amazon who help in obtainng business
objectives by efficiently motivating employees. Leaders perform different functions such as
planning, organising, staffing, directing and controlling. Effective balance of all these functions
help managers to achieve goals in a fixed time. When all these activities are performed
effectively, goal achievement becomes easier. (Steinberg, 2011). It is a multi-disciplinary
process if spoken about its nature of business. It is a delivery focussed process that ensures that
an organisation is able to successfully turn inputs into outputs by achieving efficiency in
working.
D2
Operations management has wide application area and it is applied to all areas of a
business. Decision making affects basic goal of Amazon and it leads to interdepartmental
confusions. Some factors that affect business environment are return on investment, impact on
brand image and effect on resources.

TASK 4
P6
Operations management is an ongoing process that includes various processes like
planning, organizing and supervision processes. It is a delivery focussed process that ensures
that an organisation is able to successfully turn inputs into outputs by achieving efficiency in
working. When all these activities are performed effectively,goal achievement becomes easier
and their efficiency in operations grows at a very rapid rate. There are numerous factors in
business environment of Amazon that affect working of operations management as well as also
stresses on decisions taken by leaders and mangers (Stoppato, 2012). Decision making affects
basic goal of Amazon and further leads to interdepartmental confusions. Factors that affect
business environment are explained as under:
Return on investment: It is a major factor that influences business decisions is
profitability and its after effects. This is a numerical expression and can be calculated as return
provided on investments done by any investors. Return on investment is the amount of monetary
benefits that investors achieve or loose by undertaking any activity or process. Calculating
return helps in evaluations options for investment.
Impact of brand: Decision making is a tricky process as it highly impacts brand image
of Amazon. If a manager does not effectively plan and process about his decisions , company
has suffer losses in monetary terms as well as from customers end. It is very important for
managers to analyse and evaluate their decisions and policies before implementing them.
Effect of decisions on resources: It is also an important factor that affects decision
making as well as working conditions of employees in Amazon. Managers should take up only
those activities and processes that do not adversely affect its human resource. For example, if
staff and employees are over exerted and burdened , they tend to loose confidence and trust in
managers thereby resulting in quick employee turnover (Wang and Cullinane, 2015).
These are few key or basic factors that affect operational management and decision
making process of leaders and managers.
M4.
Each and every factor and decision taken by managers and leaders in a specific business
concern many a times addresses specific problems and errors in a department but all decisions

collectively affect main goal and objective of a company and its profitability. Many a times these
decisions also lead to inter departmental complications and confusions. It also further affects
brand image and competitive position of a company in market.
CONCLUSION
From this report, it can be concluded that operations management is a key feature of
management. Operations management in any industry aims at building efficient relationship of
employees with their subordinates in management and reduces wastage costs in production
processes. It is a broad relationship framework where trust has a direct effect on profit of
business. Maintaining efficient employee relations is very important as employees help business
organisations to achieve their future goals and objectives. Also this report, studies how efficiency
in operations can be achieved by different approaches that help in judging operational efficiency.

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