Management and Operation Report: Roles, Theories, and Approaches

This report delves into the multifaceted aspects of management and operation, focusing on the distinct roles and characteristics of leaders and managers within an organizational context, specifically referencing M&S Ltd. It explores the practical application of leadership and management functions in various scenarios, including stressful situations, cash flow problems, and potential fraud. The report further examines different leadership theories and models, such as situational leadership, system approaches, and contingency approaches, providing a comprehensive understanding of their application. Moreover, it highlights key approaches to operational management, emphasizing the roles of leaders and managers in enhancing productivity and profitability. It also underscores the importance of operational management in achieving business objectives and analyzes the impact of environmental factors on operational decision-making, providing valuable insights into effective business strategies.

MANAGEMENT AND
OPERATION

Table of Contents
MANAGEMENT AND OPERATION...........................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different role and characteristics of leader and a manager...............................................3
P2 Application of role of a leader and function of manager in different situations...............5
P3 Theories and model of approaches....................................................................................6
TASK 2............................................................................................................................................8
P4 Key approaches to operational management and the role that leader and manager play: 8
P5 Importance of operational management in achieving the objective of the business.......10
P6 Factors of environment that have impact on operational management and decision making
..............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is related with the function of operation in an organisation.
Operation management creates high level of efficiency to the organisation which help in to
produce more efficiency to the work that is assigned. It is the key part of the management that
management must consider to grow their business in future. For establishing effective
operational management it is important for the leader and manager to play with operation
management effectively so that their business can grow and achieve new opportunities.
Operation management is related with the production process that involves designing and
controlling and it produce efficiency to the task that are involved in production process.
Operation management help in to redesign the operation of the business. It considers the
responsibility to ensure that operation are efficient in using less resources to meet the wants and
needs of the customer (Tangpong, 2011). It involves the process that help in to convert input into
the final output.
TASK 1
P1 Different role and characteristics of leader and a manager
Manager and leader are the one who play very important role in the organisation. They
directly coordinate with the top management and help in to make effective decision in the
business so that better growth to the business can be produced over a long run. Leader motivates
his team member to work in any kind of situation that may arise in future and that have impact
over the business (Ageron, Gunasekaran and Spalanzani, 2012). Effective leader can make the
business of the company to growth oriented. Manager leads various department in an
organisation and it is required to have effective management in various department to produce
more efficiency to the work.
Following are the key role that leader of M & S Ltd plays in an organisation to make
organisation to be more growth oriented:
1. To make proper availability of the resources:
It is the duty of the leader of the team to make availability of the resources that are required for
conducting and fulfilling the task that is assigned to the team. Leader has the duty to check that
any of the team member is not facing any problem while doing their work.
2. Problem Solving:

Leader is the one to whom team member consult if they face any problem in doing their work.
Leader must have positive relationship with their team member so that member can tell their
problem to leader to solve the issues that are faced by them.
3. Team Builder:
Leader is the supreme authority of the team to whom all the members of the team consult. Leader
builds the image of the team.
Following are the important functions of the manager in an organisation:
1. Liaison between various department:
It is the prime duty of the leader to establish interface between various sector of the business so
that smooth and efficient working can be done.
2. Disseminator role:
It is the duty of the manager to collect all the information from various sectors of the
organisation and pass such information to the top management and subordinates so that better
decision can be taken up by them (Alderton and Saieva, 2013).
3. Hindrance handler:
Manager is the one who handle all the hindrance that likely to affect the business of the company
like strike, lock out, insolvency and bankruptcy.
Following characteristics makes the leader and manager to be more effective:
1. Kindness:
Leader and manager must be generous toward the employees and subordinates so that they can
contact to them without any hesitation.
2. Decision maker:
Leader and manager take all the decision for the smooth working of the company. Decision can
be taken up by them only when they have good skill over the subject (Ashby, Leat and Hudson-
Smith, 2012).
3. Focus oriented:
Leader and manager must have the quality to focus on the objective and goal of the organisation
so that they can establish process to achieve the target of the organisation.
4. Effective communication:

Communication is the key characteristics for the leader and manger to manage their team
member because leader and manager both face the public so communication style is important
for them.
5. Will power:
Will power is the efficiency of thinking and to take decision in various situation that may affect
the business.
P2 Application of role of a leader and function of manager in different situations
Situation is uncertain and it is required to consider by the top management while taking
decision so that adverse situation may not affect their business. Situations are contingency that
may affect the business growth (Barton and Court, 2012).
There are three factors that are required in to establish situational control-
 Task structure
 Leader and members relations
 Positioning power
1. Stressful situation-
Stressful situation may arise in the business and through stress person can not focus on the
intellectual ability on the job. Intelligence can be used in stress free situation because stress
creates hindrance in the mind of an individual. It is recommended to alter the leadership situation
to use on leader's strength. Co-ordination among the leader's style and demand of situation make
group's effectiveness. Situational theory considers the personal characteristics and motivation of
leader to the subordinates to interact with the situation that is faced currently by the group.
2. Cash flow problem and poor collection-
Cash flow problem may affect the business of the company so it required to consider such issues
while taking decision. Manager must plan their work according to the cash available in the
business and if they face liquidity issues in the business then it is required to focus on the
expenses and cash outflow (Blome and Schoenherr, 2011).
3. Theft and fraud-
It is required to consider by the manager and the leader to discover that the employees of the
company are stealing something that may harm the asset and goodwill of the company and it
may also create the law suit against the company. Fraud affects the business of the company in

negative way so it is required to consider by the manager that any of the employee do not make
any fraud in the company because it has direct impact over the goodwill of the company.
4. Poor management Decisions-
Poor management affects the business of the company in adverse situation so it is required to
have effective business management in the business so that business can grow in future. Leader
and manager deal with the situation in relation to poor management because it may result in
failure of the business (Hristov and et. al., 2013).
5. High taxes and fines for paying late-
it is the duty of the manager and the leader to pay attention on dead line for paying taxes so that
additional fine will not incurred to the company and may not result in increase in the expenditure
in the hand of the company.
P3 Theories and model of approaches
Following are the different theory and model of approaches-
1. Situational leadership theory:
Situational theory considers the traits and qualities to deal with different situation that may arise
and affect the business of the company as competitor pissing you off, idea is not working out,
boss is Old fashioned, got rejected, theft and fraud, cash flow problem and poor collection,
stressful situation etc. many study has taken place to find out the best style for leadership
(Ramasamy and et. al., 2014).
Situational theory considers three factors that are required in to establish situational control i.e.
task structure, leader and members relations, positioning power.
 Task structure considers whether the job is organised, non organised or fairly organised.
It can be characterised only on the basis of requirement of subordinates.
 Member relation analyse the relationship among the leader and subordinates.
Relationship also considers the loyalty of the employees toward their leader. It also
derives the support of the team to the leader. When leader is happy with their subordinate
then leader can give them reward whether in form of monitory or non monitory form and
if leader is not satisfied with their team member then leader can punish them.

 Positioning power measures the power of the manager. It considers the power of the
manager for rewarding and punishing their subordinate. It depends upon the favourable
and non favourable powers of the manager.
2. System approach to leadership:
This approach is adopted to consider how leadership can be applied for the development of the
business. System approach develops psychology and techniques for the development of the
management. The systematic approach is successful to change the thought process of the leader
(Rani and Moreir, 2010). The method gives more improvement, not adopting activities like
blaming others. Leadership is also divided into various parts as front line manager and other
manager.
System approach follows systematic way to achieve the targeted result i.e.
 Input:
Inputs are the things that is required to produce the final output. These may be people,
technological knowledge and skills.
 Transformational process:
Transformational process is to transfer the available resources into the next process as material
and labour are converted to goods and services.
 Output:
Output is the final product that is achieved by following the transformational process. It satisfy
the demand of the consumer and help in to achieve the target of the company.
3. Contingency approach:
Contingency theory states that the effectiveness of leadership depends on the contingency that
may arise in the business (Singhal and Singhal, 2012). This theory puts a strong point that there
no best way to manage a company and to take effective decision instead of action is contingent
on internal and external situation that may affect the business of the company. Contingency is the
happening of uncertain event that may have impact over the business of the company. Behaviour
is also a contingency on which management effectiveness depends.

TASK 2
P4 Key approaches to operational management and the role that leader and manager play:
There are key approaches to the operational management that manager and leader of M & S Ltd.
play in the organisation to improve its productivity and profitability-
1. System approach-
System approach helps in to change the thought that are in the mind of the top management and
senior management into the reality. It covers the three aspects to final achieve the targeted result
i.e. Input → Transformational process → Output.
It is required to establish interaction between external environmental factors and corporation.
 Input and claimants- There are various inputs that are required to start the process as
people, skills, technological knowledge etc (Slack, Chambers and Johnston, 2010).
 Transformational process- it is the process that put the input to the transformational
process to complete the task. Management focuses on finance, marketing and production
sector to achieve the final output.
 Output- is the final product or result that is achieved by following complete procedure
that is transformation of input by using various factors to the final output. Output may be
product, service, satisfaction and integration of goal.
2. Social system approach-
Organisation is the group of individuals and it is required to establish coordination among the
various sector of the society so that conflicts among them can not be faced by the organisation
because it the pure hindrance for the success of the business. Society is important part of the
business because business operates for the society and by the society. So it important to consider
society in the business. Business has main focus on the society to provide satisfaction to the
demand of the customer (Talk, 2016).
3. Decision approach-
This theory is used to take effective measurement for taking decision by the manager and top
management. Decisions in the organisation are taken by the senior management team who have
skills to take decision in adverse situation to solve the problem that are faced by the employees.
4. Human behaviour approach:
Human plays important role in the business so it is required to consider human behaviour in the
business so that future conflicts in regard of human nature do not arise. It is required to treat

subordinates with humanity to retain them to long time in the business. Leader can lead their
subordinates only with humanity and treat all the employees on equal grounds (Storbacka,
2011).
Role of manager in an organisation-
1. Give direction:
Manager provides guidance to the subordinates so that they may continuously work in the
organisation. Manger provides direction to the employee when they face issues in performing
their job.
2. Hire great people:
Manger hires the skilled and renowned candidates so that they may perform their duty and
enhance the market sector of the company.
3. Manage resources:
It is required to have adequate resources to the employees to perform their job. Manager is the
important part to make them available the required resources.
4. Communicate information:
Manager gathers various information from various departments and communicate to the
employees.
Role of leader in the organisation:
1. Develop strategy:
Leader develops the strategy for the team so that by following the strategy team member can
work more efficiently(Rani and Moreir, 2010).
2. Influence the behaviour of the people:
Leader is the one who influence the team member. He has a control over the subordinates to put
their best effort to achieve the objective.
3. Decision maker:
Leader has the authority to take decision on behalf of their subordinates. It is required to consider
the opinion of the team member while taking decision.
4. Team Builder:
Leader is the superior than other member. When relationship among the employees of various
sector is strong then it built the effective team.

P5 Importance of operational management in achieving the objective of the business
It is required to opt effective operational management by M & S Ltd. because it has many
advantages as-
1. To meet customer's competitive priorities-
Customer is the god for the business. Business runs to fulfil the needs and demands of the
customer. When business do not fulfil the needs and wants of the customer then it can't run in
long run and can not grow in future. It is required to consider competitor's strategy to take a
stand in the market.
2. To improve profitability and productivity-
Operational management helps in to improve the productivity and profitability of the company.
Operational management helps in to provide solution to the problem that increase the
productivity as well as profitability of the company (Singhal and Singhal, 2012).
3. Actively use available resources:
Operational management helps the team of individual to use the available human resources to
fulfil the target of the business. It is better to use available resources to increase the productivity
of the company so that profitability of the organisation can be increased.
4. Minimize the cost incurred:
Operational management helps the organisation to minimize the cost and expenditure because it
believes on the fact to use the available resources to give best out come. It also focuses on the
fact to reduce the cash out flow (Tangpong, 2011).
5. To achieve the goal and objective of the company:
Operational management make the best use of available resources that help the organisation in to
achieve the goal and objective of the business. Leader and manager make their best effort to the
work so that they may achieve the target as soon as possible because operation management
helps the organisation to better reform the strategy so that they may achieve their target.
6. Minimize the level of Risk-
Operational management efficiently uses the available resources to reduce the risk that is
associated with the task. Operational management derives the techniques that are used to reduce
the level of the risk and it also specifies the steps to complete the work as planning, organising,
directing and controlling (Talk, 2016).

P6 Factors of environment that have impact on operational management and decision making
There are two factors of environment that have impact over the operational management and
decision making:
1. Internal Environmental factors
2. External Environmental factors
 General environment factor
 Task environment factor
Following are the internal factors that have impact on operation management and decision
making-
1. Employees:
Employees are the key part of the business because they perform the task in a company to
achieve the objective of the business. Employees can easily affect the business and may make
alteration in the business. If employees goes for the strike and lock out then it may have negative
impact on the business.
2. Owner:
Owner are those person who have invested in the company and secure the ownership right over
the business. They can easily influence the business. When owner invest in the company then
company issues share to the owner. It is not mandatory that only individual Owner can become
the owner, but group of individual can collectively become the owner by purchasing shares of
the company . They can easily influence the company if they found any misconduct (Tangpong,
2011).
3. Culture:
Culture is the behaviour of the person and community from where the employee belongs. Culture
differs from person to person. It is important task for the company to manage the employees of
different culture so that conflicts among the employee do not arise in future.
4. Board of directors:
Board of directors are the supreme executive authority who have power to make alteration in the
company and they are elected by the members. If board of director do not perform their task
then they may be removed by the member or any existing director of the company.
Following are the external factors that have impact over the operational management and
decision making:

1. General environment factor
 Political legal Dimension:
Political and legal factor affect the business of the company. Political factors are those factors
that affect the business as changes in policies, tax rate etc. legal factors are those factor as
guidelines, rules and regulations that are implemented by the government officials and that affect
the business of the company(Vieira and et. al., 2010).
 Economic Dimension:
Economic factors are those factor as inflation, interest rate and unemployment that affect the
business of the company. During the inflation, company covers the higher cost for the
availability of resources.
When interest rate is high then company pay more to borrow the money and when
unemployment increase then company has confusion to whom select for the vacancy
(Logenthiran and et. al., 2012).
 International Dimension:
International factors affect the business. Globalization of business brings together all the nations,
network of communication and when globalisation took place then it is mandatory for the
company to operate its working as per the international reforms.
2. Task Environment factor-
 Strategic partner:
Strategic partner are those partner to whom the company have agreed for the benefits of the
company. Strategic partner have a power to influence the business of the company.
 Supplier:
Suppliers are those individuals to whom company made an agreement to take the material and
things that are required for the production process. To provide quality to the production it is
required to have good relation with the supplier.
 Customer:
Customers are the important part of the organisation because a company provides its services to
the customer. It is the prime objective of the company to provide full satisfaction to the
consumer to run in long way (Alwaer and Clements-Croome, 2010).
 Competitor: