HND Business (Jan-Mar 2020): Management and Operations Report

This report provides a comprehensive analysis of management and operations, focusing on the roles of leaders and managers within the context of Nestle, a multinational food processing company. It begins by defining and comparing the characteristics of leaders and managers, highlighting their distinct roles and responsibilities in an organization. The report then explores practical examples of leadership and management functions in various scenarios, such as high competition, conflicts, and lack of skilled employees. It further delves into the application of relevant theories and models, including situational leadership and contingency leadership, to enhance decision-making. The report also examines key approaches to operations management, such as business process management and Six Sigma, and their application in improving efficiency and productivity. The importance and value of operations management are discussed, emphasizing its contribution to enhancing management skills, improving productivity, and optimizing resource utilization. Finally, the report assesses the factors within the business environment, utilizing PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental influences on Nestle's operations. The report concludes by summarizing the key findings and insights gained from the analysis, providing a holistic view of management and operations within the selected organization.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Defining and comparing roles and characteristics of leader and manager............................1
TASK 2............................................................................................................................................2
P2: Examples of role of leader and the function of managers.....................................................2
P3: Application of theories and models.......................................................................................3
TASK 3............................................................................................................................................4
P4: Key approaches to operations management..........................................................................4
P5: Explanation of importance and value of operations management.........................................5
TASK 4............................................................................................................................................6
P6: Assessment of factors within the business environment.......................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operations management refers to administration of practices in such a manner so that
highest level of efficiency possible in an organisation (Barbosa-Póvoa, da Silva and Carvalho,
2018). It includes sound management of operations so that productivity can be maximised. The
company which has been selected for this report is Nestle which is a Swiss multinational food
processing organisation. In this assignment, a detailed analysis will be made on difference
between role of leader and manager, application of their roles in contexts, their role in operations
function. Also, demonstration of understanding of relationship between leadership and
management will be covered as a part of this report.
TASK 1
P1: Defining and comparing roles and characteristics of leader and manager
A leader is a person who is responsible for maintaining command over a group of
individuals (Cachon, Girotra and Netessine, 2020). A manager is a person responsible for
overall administration of company. The role the leaders and managers of Nestle can play in view
of technological changes happening in dynamic business environment are as follows-
Role of leaders-
 Required at different levels- A leader is a person who is required at all levels of
management in an organisation. The leaders of Nestle will cope with dynamic
technological changes by improving their processes and technology.
 Supporting role- A leader needs to extend support to the employees working in an
organisation. The leaders of Nestle should support the workers by helping them adopt to
new technology through special training sessions.
Characteristics of leaders-
 Delegation- A leader needs to delegate the authority to subordinates present at the lower-
level of the organisation. The leaders in Nestle need to delegate the authority to take
relevant decisions to workers so that it can help them in adopting to new technology.
 Commitment- A leader is highly committed towards the achievement of tasks. The
leader in Nestle needs to be committed towards adoption of new technology.
Role of managers-
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 To perform managerial functions- Manager needs to perform the functions of planning,
organising, staffing, directing and controlling. Thus the managers of Nestle must perform
them effectively to facilitate adoption of new technology.
 Resource allocation- A manager needs to allocate resources effectively in an
organisation. This is necessary so that new technology can be adopted by Nestle.
Characteristics of managers-
 Communication- A manager should know how to effectively communicate with
subordinates (Cinque and et.al., 2019). This will help in addressing concerns the
employees may have about new technology in Nestle.
 Knowledge- A manager must have sound knowledge about the work of the organisation.
Managers of Nestle need to have full knowledge about the new technology before they
can adopt it and can implement it.
Comparison between leader and manager
Leader Manager
Leader sets vision to follow for the
organisation.
Managers sets goals and targets which people
working in a company should follow.
Leaders have to take risk for the betterment of
an organisation.
Manager have a task of controlling the risk
taken by leaders.
TASK 2
P2: Examples of role of leader and the function of managers
In organisations, various circumstances can occur which demand quick action. It is
therefore the responsibility of leaders and managers to guide their subordinates in such situations
(Cukur and Svensson, 2016). There are different roles which leaders play and functions of
mangers in situational contexts of Nestle explained as below-
High competition- If there is a high level of competition prevailing in the market then it
will lead to price war forcing firm to reduce prices. Leader of Nestle can play their role by
setting a clear vision and managers can use the function of planning to effectively counter high
competition. For example- Nestle is facing high competition from other coffee companies and
thus leaders and managers need to be effective in dealing with challenges.
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Conflicts- There may be conflicts between different teams of an organisation which can
potentially lead to problems in management (Jones and et.al., 2016). Leader of Nestle can play
the role of influencer and manager can use function of organising to resolve issues between
workers. For example- Nestle faces issues in decision-making in some of its teams which can be
resolved through intervention by leaders and managers.
Lack of skilled employees- This is a problem which companies can face when there is a
shortage of skilled employees with them. Leader of Nestle can play the role of facilitator and
manager can use function of staffing to identify and recruit skilled employees. For example-
Nestle is facing staffing issues which can be sorted out if leaders and managers adopt sound
human resource policies.
Lack of focus- This issue happens when the workers lack focus and cannot concentrate
on achievement of organisational goals and objectives. Leader of Nestle can play the role of a
guide by guiding employees and manager can perform the function of directing which will help
in giving clear orders, directions and instructions for subordinates to follow thereby enabling
them to do the work effectively and efficiently and contributing to the best of their abilities at
full potential. For example- In Nestle, clear directions and instructions have to be given by
leaders and managers which will help them in improving performance.
Deviations and variations- Deviations and variations happen when the expected
standards are not met in organisation. Leader of Nestle can play the role of motivator by finding
out issues and problems bothering them and manager can perform function of controlling so that
performance can be improved. For example- Nestle should identify deviations and variances in
problems so that they can be rectified quickly.
P3: Application of theories and models
Various theories and models can be adopted by organisations to oversee their working
pattern. They enhance the decision-making skills of management of the enterprise (Laari and
et.al., 2016). Their application in the context of Nestle is as follows-
Situational leadership- In it, a leader should not exhibit same style of leadership in all
contexts. The leader must therefore adjust the style of leading according to the following level of
followers. The different elements of this style which can be applied by Nestle are telling and
directing, selling and coaching and participative and supporting approach. It also states that
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leadership style exhibited should depend upon the context of situation and there should not be a
fixed way of leading and managing teams in a firm.
Systems leadership- It is an approach which leaders and managers can use to bring a
system-level change in the organisation (Madsen, Falk and Suter, 2017). Nestle's management
can use it by incorporating a thorough change in the processes and systems of the organisation.
Contingency leadership- For this approach, it is required that the leaders do not display
any fixed style of leadership. They must be able to act according to the needs and requirements
of situations and circumstances prevailing in the organisation. For example- Nestle's leaders need
to understand and analyse the situation and accordingly take an action for the benefit of
company.
TASK 3
P4: Key approaches to operations management
Operations management is responsible for maintenance of efficiency, effectiveness and
productivity in an organisation (Approaches of operational management, 2015). Its different
approaches can be applied in the context of a company. Their explanation is as follows-
Business process management- Its steps include designing, modelling, analysis,
monitoring and improving. This approach can be used for bringing efficiency in processes which
will thereby lead to bringing productivity in a big organisation like Nestle.
Business process rengineering- In it, processes are not improved but instead started
from the scratch (Mahmassani, 2016). Nestle's management can adopt this approach which will
enable it to find out the reasons of underperformance.
Six sigma- The steps of six sigma include defining, measuring, analysing, improving and
controlling. The management of Nestle can use this approach which will enable them to
minimise the rate of defects in their manufacturing process which will in turn help in raising
profitability level.
Supply chain management- This a modern aspect of operations management which
includes maintenance of supply chain. Nestle's management can adopt it which will raise its
efficiency and profits.
Roles played by leaders and mangers at functional levels-
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Top-level management- The leaders and managers of Nestle can play the role of
motivator at top-level management by ensuring that motivation and morale of staff of entire
organisation is maintained.
Middle-level management- The leaders and managers of Nestle can play the role of
mediator in middle-level management. This will ensure that the company's lower-level
management is connected to top-level management.
Lower-level management- The leaders and managers of Nestle can play the role of
instructor and director in the lower-level management (Meyer, Wichmann and Spengler, 2016).
This is necessary to ensure that subordinates are able to understand the instructions clearly which
will enable them to work effectively and efficiently will full productivity and potential to achieve
the goals and objectives of the organisation.
Justification- The leaders and managers of Nestle can improve the efficiency in the
organisation by selecting six sigma model. This is so because it will help in analysing defects
and errors that occur inadvertently in the organisation which will be helpful in rectifying them
for improving performance.
P5: Explanation of importance and value of operations management
As operations management aims to improve the processes of a company it has the most
importance and value for a company. Nestle's management can use it for achievement of short-
term and long-term goals and objectives of the company. The importance and value has been
stated as below-
 Enhances management skills- The principles of operations management are the same
for all businesses irrespective of the nature of organisation. It has helped Nestle's
managers in enhancement of their skills which leads to seamless management of daily
activities of the company which will ensure achievement of goals and objectives.
 Improving productivity- The principles of operations management can be applied by
business enterprises to improve their productivity level. It has enhanced Nestle's
management to take steps to improve the processes thereby raising the overall
productivity thus ensuring achievement of goals and objectives.
 Optimum utilisation of resources- Operations management principles are important
because they facilitate optimum utilisation of resources in a firm. Nestle's managers can
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ensure this by proper allocation of resources and monitoring their usage so that goals and
objectives can be achieved.
 Functioning of the organisation- Operations management is important for a company as
it improves its overall functioning. In a company like Nestle it is essential to streamline
the processes right from manufacturing to sale of goods and promotion which will ensure
smooth functioning of its processes. This can enhance the firm to raise its profitability
level and will lead to achievement of goals and objectives.
 Motivation of employees- Operations management facilitates motivation of employees
of an organisation (Rodríguez-Espíndola, Albores and Brewster, 2018). In Nestle,
workers are regularly guided about their respective roles and the way in which they can
perform to meet the goals and objectives of firm. Thus leaders and managers can make
sure that subordinates are appropriately rewarded for their good work.
TASK 4
P6: Assessment of factors within the business environment
Business environment is dynamic and ever-changing in its nature. Only those firms can
stay in the market who quickly adapt to its dynamism. For analysing the factors within the
business environment PESTLE analysis is conducted. Its application in the context of Nestle is
as follows-
Political factors- These factors are government policies, political stability, tax policy etc.
Nestle is impacted by these factors as its decisions depend upon the change in them. For
example- If government policies are in favour of Nestle then it can raise its profits.
Economic factors- These are economic growth, exchange rates, disposable income of
customers etc. Nestle's management is impacted by them as its leaders and managers' decision-
making ability is affected with a change brought in any of these. For example- An increase in
disposable income of customers can lead to leaders and managers taking decisions to raise the
level of production to increase profits.
Social factors- They are population, distribution of age, social culture etc. The managers
of Nestle are impacted by a change in them. For example- If Nestle is planning expansion in a
foreign country and its social culture is in its favour then this will lead to managers taking
decisions to set up its manufacturing base there.
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Technological factors- These are level of innovation, research and development, change
in technology etc. A change in any of these factors can impact company's strategy and decision-
making. For example- If there is a technological change which is necessary to adopt then
management of Nestle needs to take decision to implement the same.
Legal factors- These are laws, rules and regulations framed by the government. A
change in any of these can impact firm's decision-making ability. For example- Favourable
change in rules and regulations can impact the management's decision-making ability in Nestle
as it will take decision to expand production level to make best use of it.
Environment factors- These are weather, climate, environmental policies etc. A change
in any of them will lead to affecting a firm's business model and decisions (Venayagamoorthy
and et.al., 2016). For example- If government strictly enforces tough environmental regulations
then the company's management will take a decision to use eco-friendly techniques of
production.
CONCLUSION
From the above report, it can be concluded that management of operations is a necessary
activity to be carried out by an enterprise. Roles and characteristics of leader and manager, their
application in situational contexts, application of theories and models, explanation of approaches
of operational management have been covered in this project. Additionally, importance and
value of operational management and assessment of external factors affecting an organisation
have been discussed.
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REFERENCES
Books and Journals:
Barbosa-Póvoa, A. P., da Silva, C. and Carvalho, A., 2018. Opportunities and challenges in
sustainable supply chain: An operations research perspective. European Journal of
Operational Research. 268(2). pp.399-431.
Cachon, G. P., Girotra, K. and Netessine, S., 2020. Interesting, Important, and Impactful
Operations Management. Manufacturing & Service Operations Management. 22(1).
pp.214-222.
Cinque, M. and et.al., 2019. Requirements management support for the ITER Plasma Control
System in view of first plasma operations. Fusion Engineering and Design. 146.
pp.447-449.
Cukur, A. and Svensson, A., 2016. Adoption of ERP system for operations management in
SMEs. In IRIS39, Information Systems Research Seminar in Scandinavia, Ljungskile,
August 7-10, 2016. (pp. 1-10).
Jones, J. and et.al., 2016. Methods of Selecting Forecast Winds for Flight Management Systems
to Support Four Dimensional Trajectory-Based Operations. In 16th AIAA Aviation
Technology, Integration, and Operations Conference. (p. 4069).
Laari, S. and et.al., 2016. Firm performance and customer-driven green supply chain
management. Journal of cleaner production. 112. pp.1960-1970.
Madsen, H., Falk, A. K. V. and Suter, S. O., 2017. Improving efficiency in river management
operations using Model Predictive Control. In 13th Hydraulics in Water Engineering
Conference. (p. 195). Engineers Australia.
Mahmassani, H. S., 2016. 50th anniversary invited article—autonomous vehicles and connected
vehicle systems: Flow and operations considerations. Transportation Science. 50(4).
pp.1140-1162.
Meyer, C., Wichmann, M. G. and Spengler, T. S., 2016. Management of recycling operations for
iron and steel making slags. Journal of Business Economics. 86(7). pp.773-808.
Rodríguez-Espíndola, O., Albores, P. and Brewster, C., 2018. Decision-making and operations in
disasters: challenges and opportunities. International Journal of Operations &
Production Management.
Venayagamoorthy, G. K. and et.al., 2016. Dynamic energy management system for a smart
microgrid. IEEE transactions on neural networks and learning systems. 27(8). pp.1643-
1656.
Online
Approaches of operational management. 2015. [Online]. Available
through:<https://tallyfy.com/guides/operations-management/>
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