Analysis of Management & Leadership in KPMG: A Detailed Report

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This report provides a comprehensive analysis of management and leadership principles, focusing on their application within KPMG. It begins with definitions of management and leadership, differentiating their functions according to J. Kotter and analyzing the Management by Objective process as discussed by P. Drucker. The report then delves into H. Mintzberg's management roles theory, leadership traits, and various leadership styles. It explores 'hard' and 'soft' management skills, transformation processes in operations management, and the meaning and costs of quality. Furthermore, it examines the role of managers in Total Quality Management (TQM) and the Just-in-Time (JIT) approach. Capacity management methods are also discussed. Task 2 focuses on KPMG, explaining its operational management department, the background of its management team, and their strengths and weaknesses. It analyzes the roles and duties of management, identifies instances where management theories were effectively applied, and explores different leadership styles. The impact of capacity management adjustments and operational recommendations for future improvements are also included. The report concludes with references to support the analysis.
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Management &
Operation
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ............................................................................................................................................1
1 Introduction with some definitions of the roles of management and leadership.....................1
2 Differentiate leadership and management functions according to J. Kotter............................2
3 Analysis of the Management by Objective process as discussed by P. Drucker.....................3
4 Management roles theory as discussed by H. Mintzberg.........................................................4
5 Leadership traits theory and discuss two styles of leadership..................................................5
6 ‘Hard’ management skills and ‘soft’ leadership skills.............................................................6
7 Transformation processes in operations management .........................................................6
8 Meaning of Quality and four costs of quality for managers
in achieving business objectives ...............................................................................................7
9 Managers role in Total Quality Management approach...........................................................8
10 Just-in-Time approach and waste reduction in operations.....................................................8
11 Three methods managers can adjust for Capacity Management in operations. ....................9
12 Short conclusion on the role of managers and leaders .........................................................9
TASK 2............................................................................................................................................9
1 Introduction to KPMG.............................................................................................................9
2 Explanation of operational management department including the role in operations..........10
3 Background of management team in operation management department.............................10
4 Strengths and weaknesses leader approaches........................................................................10
5 Roles and duties of management in KPMG...........................................................................11
6 Occasion where the role of management was excellent to apply different
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theories and models of management approaches.....................................................................11
7 Theory of leadership styles....................................................................................................11
8 Type of transformation process with example.......................................................................12
9 The impact of two adjustments for Capacity Management on the organisation....................12
10 Operational recommendations to management for future improvements............................12
References .....................................................................................................................................13
.......................................................................................................................................................15
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INTRODUCTION
Management and operation is an integral part of organisation in order to monitor the
activities or functions of company and improves the quality in production of organisation. In
simple terms it refers to converting raw material into finished goods or products with optimum
utilisation of resources for accomplishment of organisational goal(Adams, A. E and et. al.,
2017). One of the main objective of management and operation is satisfaction of customers as
well as employees in terms of cost and time. Along with these optimum utilisation of resources
enable company to maximise wastage which adds value to the company. In context to KPMG,
one of the leading professional service company which is introduced in the year of 1987. It's
headquartered in Amstelveen, Netherlands. KPMG stands for Klynveld Peat Marwick Goerdeler.
It is segmented into services lines i.e. Audit, Advisory, Tax. This research covers the role and
characteristics of leader and manager, theories, approaches and models of leadership, factors
within company which impact manager and leaders decision making.
TASK
1 Introduction with some definitions of the roles of management and leadership
Management and leadership are different aspects of organisation but it should go hand in
hand i.e. each of them require each other support or assistance for achievement of goal
effectively. Management is the process of managing or coordinating business activities or
functions for the achievement of pre determined goal. On the other hand leadership is a quality
or ability to guide or inspire others in order to obtain the organisational objective(Asef‐Vaziri,
A., 2015).One of the main difference which manager and leader separate is that leaders have
people to follow whereas manger has people who work for them for obtain the goal. In context to
KPMG, a multinational professional service company who started in the year 1987. It is located
in Amstelveen, Netherlands. They are diversified into various industry like banking, healthcare,
consumer & retail, telecommunication, infrastructure etc. Company is very passionate and
dedicated for the achievement of goal by adapting innovative technology and excellent
management & leadership skill within company which makes them to be an outstanding
performer among its competitors.
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2 Differentiate leadership and management functions according to J. Kotter
As management and leadership tittle differ like that they play different roles within and
outside the organisation and contain various functions for the attainment of organisational goal.
Thus for the betterment of company management and leadership has equal role to play(Bititci,
Cocca,and Ates, 2016.). Thus, the difference between management and leadership functions by J.
Kotter which are as follows:
Basis Management Leadership
Meaning It is a process of managing and
directing business resources in
order to achieve organisational
goal.
It's a quality or potentiality of
an individual who inspire and
motivates others to put their
full effort towards
achievement of organisational
objective.
Employee relation It controls and manage the
subordinates by directing and
coordinating with employees.
It empowers the followers by
encouraging them and gain
their trust.
Establishment of goal It execute the plan which is
given by leader by adapting
business strategies.
It sets the goal or objective of
an organisation and articulates
to manager.
Administration It uses authority and direct the
employees towards
organisational goal.
It influences and encourages
the followers in order to attain
goal in an effectively and
efficiently.
Range of Perceptive It has short range view as they
have to follow the goal which
is set by leader.
It has long range perspective
towards goal and provides the
information to manager.
From the above statement it differentiate the management and leadership as they are
distinct concept yet there is a natural interrelatedness in terms of skills, functions and role on
which they operate for the accomplishment of organisational goal in an effective manner and
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leader have unique role to play which enable the company to improve its overall productivity and
profitability(Brandenburg and et. al., 2014). In context to KPMG, they have proper management
which can plan, coordinate and monitor the business operations. On the other hand an excellent
leadership who can motivate, influence and makes employees to work towards the organisational
enthusiastically.
3 Analysis of the Management by Objective process as discussed by P. Drucker.
Management by Objective is an approach which identifies, analyse manage the
performance and brings a balance between objectives of employee and organisation
(Management By Objectives, 2019). It also determines the objective of employee and company
along with this they provide feedback on their outcome in order to improve the overall
productivity and performance(Burns., 2014). Therefore, it is also known as management by
results. Peter Drucker gave different steps or process for management by objective which are as
follows:
Goal setting: For any organisation their key element is to set goal or objective for
company according to which they carry forward their task effectively. It includes
mission and vision of an organisation which enables them to move forward to next step.
Communicating the goal: Once the organisational define the next step is to
communicate that with employees and assigning the roles based on their potentiality.
For more effectiveness , Peter Drucker uses the term 'SMART' i.e. Specific,
Measurable, Acceptable, Realistic and Time-bound.
Assess the involvement of employee: After the goals being communicated among
employees then manager should take initiate for the participation of employees. They
can form teams and different groups of employees in order to attain the pre determined
goals.
Evaluate the performance: When employees started working according to the
instruction of manager, after that they should analyse or monitor the work of
employees(Chan and et.al., 2017). If any mistake occur manger should train and enable
them to come over their weakness which enrich the company's performance.
Appraisal of performance: After analysing the performance manager should appraise
employees effort before company and provide them certificate, memento etc. It builds
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and maintain a strong relationships between them and it enrich the company's
expansion by attaining maximisation of profit.
From the above mentioned statement it explains the management by objective given by
Peter Drucker for the effectiveness of organisational goal. In relation to KPMG, the main reason
behind their success is that they communicate the organisation goal and assign responsibilities to
employees which leads to expansion of company in an effective and efficient manner.
4 Management roles theory as discussed by H. Mintzberg
H. Mintzberg, a well known management thinker and expert believes that skills are
learned through experience but not taught by someone. He introduced management role theory in
the year 1991 in order to bring effectiveness in the performance of company(Chevalier and
et.al., 2015). As each manger has different skill, for this KPMG noted that every manager should
have these role for the accomplishment of pre determined goal in an effective and efficient
manner which is described below:
Interpersonal Roles: These roles concerned with manager's behaviour and involves the
employees by assigning them different responsibilities in order to obtain organisational
goal or objective. It contains three roles i.e. figurehead, leader, Liaison. In figurehead
manager act as a figurehead as they have to represent the organisation and provides
confidence and participate the employees for the attainment of pre determined goals. In
this they seen as sign of authority(Dobrzykowski and et.al., 2014.). In leader role
manager encourages, motivates and builds an effective relationship between employer
and employee. In liaison role, manager communicates and describe the information and
maintain a network within and outside the company. By using these roles managers can
improves their efficiency and can easily attain the maximisation of profit.
Informational Role: This role is all about receiving, collecting and transferring to
employees in order to reduce conflict of interest for the expansion of company. It has
three main roles i.e. Monitor, Disseminator and Spokesperson. In monitor role manager
look after the external and internal issues which effect the organisation and provides
solutions to their issues. In Disseminator role manager convey the external information to
subordinates and company along with this it mainly require delegation skills. Under
spokesperson role, manager communicate the information of company to outsiders which
help stakeholders to keep updated regarding the operations of business. By adapting these
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roles manger can enhance their skills and can maintain an effective relationship between
company and employees.
Decisional Role: Decisional role is concerned with gathering the information and making
appropriate choice or decision in favour of employees. Manager's interpersonal role leads
to decisional role(Fan and et.al., 2014.). It covers entrepreneur, disturbance handler,
resource allocator, negotiator. Under entrepreneur role manager design, initiate and
encourage the employees for adapting changes and innovation. In disturbance handler
manager takes corrective actions when conflicts, disputes or any kind of grievances arises
within an organisation. In resource allocator manger distributes the resources including
time, equipments, funding and human resources required for goal achievement to
employees(Zhao and Huchzermeier, 2015). In negotiator role, they represent the
company in major negotiations impacting manager's area of responsibility is a specific
task which is essential for spokesperson, figurehead and resource allocator role. By
implying these decisional roles manger can enrich the company's productivity and
profitability.
These ten roles stated by Mintzberg enables the KMPG manager to be more effective,
transparent in communication and also helps them to make fair decisions without harming the
subordinates morale and values. Thus it improves the proficiency and overall performance of
company.
5 Leadership traits theory and discuss two styles of leadership.
This trait model of leadership is depend upon the characteristics of many leaders and how
they encourage the employees in order to put their full effort towards the achievement of
organisational goal(Francis and et. al., 2014.). For more effectiveness of management, company
follows several theories, concept which directs the leader or manager to improve the
productivity. Some of the theories are as follows:
Situational Leadership: Situational leadership signifies the skills of leader's attitude on
several business obstacles and ability to take appropriate action without affecting the
employees morale.
System Leadership: Under this it enable the manager to build interrelatedness between
various organisation departments and enhance their innovative skills by adapting latest
or creative technology for the betterment of organisation.
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Contingency Leadership: It mainly concerned with manager attribute and its their
behaviour towards handing business situation.
Styles of leadership
Every organisation has unique style of leadership who work towards the attainment of
goal. Some of the leadership style are as follows:
Autocratic: Under this leader provides the clear expectation what needs to be done
including time and how should be done(Gao and You 2015). They give information in
terms of commanding the followers.
Democratic: In this democratic leader , they guide and make followers to participate by
putting their full effort in order to obtain organisational objective in effective manner.
From the above mentioned statement KPMG leaders uses necessary style in order to
improve the overall performance of company.
6 ‘Hard’ management skills and ‘soft’ leadership skills
Skill means an ability of an individual to do particular given task effectively. In that some
skills are 'hard skill' and some are 'soft skill' of a person. It is a crucial part for every managers in
order to bring effectiveness in company(Gunasekaran, Irani and Papadopoulos 2014). Hard skill
are those skill which can be learned through classroom lectures and can be measurable i.e.
computer programming, proficiency in foreign and these skill can be earned through certificate.
On the other hand soft skill is an interpersonal skill i.e. way of interacting with others which is
hard to measure. Some examples are work ethics, communication etc. In context of KPMG its
leaders has excellent hard skill as well as effective soft skill which enrich them to increase
company's profitability.
7 Transformation processes in operations management
Transformation process in operation management means converting input (land, capital,
raw materials) into output( finished goods or products, service ) and its a continuous process.
The main goal of operation management is that maximise the efficiency with optimum utilisation
of resources. In operation management it undergoes through three steps i.e. input, transformation
process, output. Under input process it receive all items of production as it includes raw
materials, equipments, labour, capital(Heizer, Render, Munson and Sachan 2017). In
transformation process all the input factors get into procedure for bringing qualitative goods like
design, size etc. In output, it is the final stage where finished goods or service are offered to
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customers. In relation to KPMG in order to maximise efficiency of company it undergoes
through transformation process which enable them to attain maximisation of profit in effective
manner.
8 Meaning of Quality and four costs of quality for managers
in achieving business objectives
Quality is one of the challenging or crucial aspect of organisation in order to capture
competitive market, satisfy customers effectively. In simple terms quality refers to the meet the
need and expectations of customers in terms of price, size and quality etc(Hitt , Carnes and Xu
2016.). which enhance the company's brand image. One of the major aspect of customers is
product with affordable price or cost and best in quality. Cost of quality is a process which
enable company to determine the extent to its resources are used tor operation in order to prevent
from poor quality, appraise the quality of company's product which is the impact of internal and
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Illustration 1: Transformation Process
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external failure. In relation to KPMG, they are known for quality and maximise the wastage of
product by producing in affordable cost. Some of the types of cost of quality which KPMG
implies for its effective business operation are as follows:
Prevention cost: It is concerned with the activity related to prevent the product from
poor quality.
Appraisal cost: It is the cost which keeps from problem of quality and it can be done
by various inspection(Ketokivi and McIntosh 2017).
Internal failure cost: This cost occurred when a defective product has produced and it
is in the form of reworked goods or scrapped.
External failure cost: It is concerned with the dissatisfaction of customer after
purchasing defective goods and it leads to customer complaints, reduce sales and
decreases the reputation of company(Taticchi and et.al., 2015).
However, from the above discussed types of quality it enable the company to improve its overall
performance and productivity.
9 Managers role in Total Quality Management approach
Total quality management is a continuous effort from management of eliminating or
reducing the errors from manufacturing in order to provide customer satisfaction and track the
employees performance regarding producing goods or service(Kim, Sting and Loch 2014). In
case of KPMG its managers has important role in this approach, some of the roles are as follows:
Assistant: Manager is responsible for selecting and appointing line manger who can
support or communicate the core principles of company to employees.
Communicator: Manager should be capable of communicating the company's
information in order to improve the efficiency of organisation(Sodhi and Tang 2014).
Trainer: Manger re obliged to provide adequate training to employees in order to
develop or enhance the employees skill to increase the company's productivity.
From the above explained roles of mangers KPMG is enable to improve its proficiency
and profitability.
10 Just-in-Time approach and waste reduction in operations.
Just-in-Time approach is an essential element for manufacturing management process in
order to improve the competitiveness of company by minimising the wastage of product. One of
the main aim of this is to tackle the obstacles in production process and in inventory. This
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method has been use by KPMG to protects the excessive inventory or increases the inventory
turnover and smoothens the company's production in order to deliver product in given time. JIT
approach is interlinked with waste reduction(Knoppen and et.al., 2015.). As waste maximisation
is main goal in JIT. It enables company to reduce the purchasing cost, buffer inventory, improves
material handling, finds the reliable suppliers, increase the frequency order through reducing lot
size etc. By using these aspects KPMG is enable to enrich its proficiency and productivity.
11 Three methods managers can adjust for Capacity Management in operations.
Capacity management is a tool to measures the company's potentiality in terms of
manufacture or sell the product and achieving organisational goal in a given time. In relation to
KPMG its managers are able to create balance between quality of product and attainment of
objective in effective manner by applying capacity management approach. It has some methods
are as follows:
Business capacity management: It refers to capacity of business, ability of team and
process. It includes human resource, equipment, technology etc.
Service capacity management: It concerned with the ability of company in IT service
like network, data centre space etc.
Component capacity management: It is regarded for potentiality of low level
management like planning or developing the software license required for single
application(Lim, Alpan and Penz 2014).
12 Short conclusion on the role of managers and leaders
Managers and leaders are important aspects for company's growth and productivity.
Managers are getting things done from employees while leaders inspire followers for the
achievement of goal efficiently(Saucedo-Martínez and et. al., 2018). KPMG managers are
productive and best influencer which lead them to success by accomplishing organisational goal.
TASK 2
1 Introduction to KPMG
KPMG, one of the professional service company which commenced in the year 1987 and
it's headquartered in Amstelveen, Netherlands. They operate in various industry like banking,
healthcare, consumer & retail, telecommunication, infrastructure etc. Along with some service
line on which they mainly operate i.e. tax, audit, advisory.
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2 Explanation of operational management department including the role in operations
Operational management department concerned with managing the operations and
process of creating goods or service. KPMG's operational department transforms raw materials
into finished goods to maximise the efficiency and profitability by minimising the wastage of
product.
3 Background of management team in operation management department.
Management team is the one who manages the business activities or operations of
company. In relation to KPMG its management team deals into planning, organising, supervising
in aspect of production, manufacturing goods or services for obtaining maximisation of profit
effectively(Mahadevan 2015).
4 Strengths and weaknesses leader approaches
For the effectiveness of company, leader has to follow some theories in order to attain
organisational objective. Each approaches has its own pros and cons. Some of the approaches
which is used by KPMG leaders are as follows:
Situational Leadership
Strength Weakness
It is perspective in nature as it direct
leaders what to do or what not do.
It enable managers to be flexible in
decision making(Ramasesh and
Browning 2014).
It give less concentrate on theoretical
basis as it is perceptive in nature.
It fails to report for how certain
demographic characteristics impact the
leader.
System Leadership
Strength Weakness
It trains leader to take effective
decision in complex issue.
It provides excellent coordination
between departments.
It doesn't identifies the differences in
system of company.
It doesn't easily applicable to practical
issues.
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5 Roles and duties of management in KPMG
Management is a process where group of people come together in order to attain
organisational goal in an effective manner. KPMG's managers plays an integral role for the
expansion of company. Some of the roles and duties are as follows:
Leadership role: Manager is responsible for inspiring the followers for put best effort for
the attainment of objective(Martínez-Jurado and Moyano-Fuentes 2014.).
Delegation: Effective managers are obliged to assign different task according to the
employees potentiality.
Communicator: Manager act as a communicator where they communicate with their boss
and convey it to employees without hiding or missing any area of information.
Thus, these roles helps KPMG managers to perform effectively and efficiently.
6 Occasion where the role of management was excellent to apply different
theories and models of management approaches
Every company face enormous issues related to organisational culture which impact
company's proficiency. In this context, KPMG is a leading professional service company ,
located in Netherlands. It undergoes with major issue i.e. lack of coordination among employees
which effect company productivity. During this problem its manager has positive attitude
towards the challenge of company(Maylor, Turner and Murray-Webster 2015 ). In order to
tackle this issue KPMG manager applies situational theory, as this theory implies that capability
of manager to behave or handle the situation effectively without effecting employees morale.
KPMG's manager deal with employees very politely by identifying their behaviour and make
them understand the importance of transparency in communication which is the main key for
building coordination. Due to this employees started supporting each other which created healthy
relationship among them and enlarge the company's productivity and profitability.
7 Theory of leadership styles
Leaders are lifeblood of an organisation who inspire followers to put their best endeavour
for obtaining maximisation of profit. From the above mentioned situation which occurred in
KPMG i.e. lack of coordination among employees. To solve this issue its manager applied
situational theory which states that behaviour and managing skill of leader in different situation.
KPMG's managers successfully handled this issue. As this theory enable the manager to be more
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flexible in decision making and also helps them to be perspective (as it guides mangers what to
do and what not to do) in nature.
8 Type of transformation process with example
Transformation process is nothing but input, transformation process and output i.e.
converting raw material into finished goods(Piran and et.al., , 2016). For example, In input
KPMG identify the clients requirement of healthcare industry. During transformation stage it
designs and develops the requirement and in the final stage it delivered the desired application to
clients which impact their satisfaction level.
9 The impact of two adjustments for Capacity Management on the organisation.
Capacity management is a measuring tool which monitor the performance of employees
and company and enable them to manage business priorities(Prashar 2015). In context to KPMG
capacity management affect the company's proficiency in terms of enabling them to identify
underused capacity and find opportunity to adapt innovative technology for increasing the
company's productivity.
10 Operational recommendations to management for future improvements.
Management and operation are the key component for the success of company. In order
to improve the efficiency of company, they needs to minimise the wastage of product, minimise
inventory and handle the material efficiently in order to maximisation of profit.
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