Ocado's Management & Operations: Leadership, Theories, and Practices

This report provides a comprehensive analysis of Ocado's management and operations. It begins with an overview of Ocado's organizational structure, defining the roles of leaders and managers, and differentiating between them. The report then explores various leadership models and theories, including situational, contingency, and systems leadership, evaluating their strengths and weaknesses. Furthermore, it critically assesses contemporary concepts like Management by Objectives and Behavioural Theory in the context of Ocado. The second section delves into Ocado's key approaches to operations management, highlighting the roles of managers and leaders. It evaluates the value and importance of operations management in achieving business objectives and analyzes the impact of the business environment on operations and decision-making. The report concludes by summarizing the key findings and insights regarding Ocado's management and operational strategies.

Management and Operations
1

Table of Contents
INTRODUCTION...........................................................................................................................2
SECTION 1......................................................................................................................................2
Overview of Ocado and its management structure.................................................................2
Definition of a leader and a manager and differences in roles of leader and functions of
manager..................................................................................................................................4
Range of models and theories of approach in leadership and their strengths & weaknesses.6
Critical evaluation in regard to different contemporary concepts on leadership and
management............................................................................................................................7
SECTION 2......................................................................................................................................8
Explaining the Key Approaches to Operations Management Within Ocado and the Major
Roles that Managers and Leaders Within the Organisation Play...........................................8
Evaluating the Value and Importance of Operations Management in Ocado Achieving its
Organisational Business Objectives and Goals....................................................................10
Analysing the Factors Present Within the Business Environment of Ocado That can Have an
Impact upon the Operations Management and Decision Making operations of Leaders and
Managers..............................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Management and operations are two different parts of a company that help to enhance
performance and productivity level of business in effective manner. Management play vital role
in organizations by setting tactics for firms and coordinating attempts of their workers in order to
accomplish their set objectives. With the help of their functions such as planning, organizing and
monitoring firm operation, management balance revenues. Operations mean decision and action
made by authority and all stakeholders of a venture that affect distribution, management,
production etc.
The current assignment will be based on Ocado, which falls under list of small
supermarkets in supermarket retail industry. This study will define introduction in context of
chosen company and their management structure. It will explain differences between leader roles
and manager functions with references to varied situations. Furthermore, this report will describe
different models and theories of approach in leadership, contemporary theories on leadership &
management and will also justify key operation functions of Ocado. This assignment will explain
manager and leader role through varied approaches and assess external & internal elements
within business environment that affect decision making for leaders/ manager. Moreover, this
study will evaluate operational efficiencies that successfully met objectives of company and
operations management theory, approaches and components that affect on wider business
environment.
SECTION 1
Overview of Ocado and its management structure
Ocado is one of the smallest British grocery store in United Kingdom, they sells groceries
to buyers who seek to purchase quality products or services (Tench and Topić, 2017). They
provide range of quality products to many people according to their taste and preferences.
Organization works accordant to their clear vision and mission statement. Vision of firm is to
provide better quality services or goods to target market. The mission of this small company is to
spread happiness through their satisfying employment strategies among people. Ocado share
accountabilities ownership and rewards in term of power, knowledge and profit. They cater mils,
dairy products, Cheese, Bacon, Sausages, healthy food items and other things to people without
making any compromise in context of quality and quantity. Along with these goods, organization
also caters Aubergine pate, Pecan Butterscotch yum yams and Frozen risotto to target market.
3

The management structure of organization displays their main executives, who are
accountable for managing and increasing operations efficiency of Ocado.
Figure 1Management Structure of Ocado
(Source: Ocado Corporate structure, 2020)
Organization follows flat management structure, which makes things easy for
management to handle. There are different kinds of management structures accessible in the
world of business and used by many organizations either small or large to operate their functions
and manage operations in effective manner. In context of Ocado, they follow flat one because it
is quite beneficial for them in term of managing day to day operations easily and suitable
according to number of workers. But it can be said that this structure will lead to lot of wated
time and lack of work life balance.
Definition of a leader and a manager and differences in roles of leader and functions of manager
A leader is a person who encourages and inspired workers of companies to move on
correct path (Coleman, 2018). He or she motivates each applicant in order to enhance
productivity and performance of staff even better. By using their leadership skills, leader work
effectively at workplace and play vital role in term of building good relationship between
employees and high authority.
4

A manager is an experienced person who is able to manage work of workers and business
in every situation by showing appropriate ways and advises to drive on and aids in increasing
business objectives and goals.
Roles of leader Functions of manager
 The most important role of leader
within Ocado supermarket is to provide
a clear vision to entire teams members
and other workers because it makes
applicants able to work accordingly
(Jabbar and Hussein, 2017).
 Other essential and beneficial role of
leader in company is to motivate and
inspire each candidate, which turn into
increasing sales and performance speed
even better. They always need to
encourage their workers and keep
employees informed about changes in
workplace.
 In list of leader roles, one more role can
be added and that is effective
communication. Within Ocado firm
leader is accountable to communicate
and interact with their employees in
order to solve their issues and making
more comfortable at work area.
 The main function of manager is
planning related to performance
management, strategic development
and operations management (Kerzner,
2017). They create plan to achieve a
specific aim and objectives of
company.
 Second function is organizing, manager
organize his or her team and available
materials or resources according to
plan.
 Staffing is the third function of
manager within Ocado through which
they hire and select new applicants
suitable for supermarket.
Differences between roles of leader and functions of manager-
Leader roles Manager functions
 Leader role is to implement develop
plan at workplace to improve
performance and productivity of
 His or her function is to create plan for
company success according to situation
(Chernev, 2018).
5

workers (Rodriguez and Walters,
2017).
 Leader role is to communicate with all
staff members to identify their needs.
 Manager function is to develop
strategies for successful satisfying the
needs of their employees.
Roles and functions with references to different situations within Ocado-
It can be said that, by applying roles of leader and functions of manager in different
situations, differences between both of them can be analyse in systematic manner.
Situation 1- Structure change
Every organization wants to enhance their productivity level while operating within its
sector, for which they apply several approaches and techniques. They try to change current
organizational structure and management practices, which affect overall performance of workers
and company as well. Structure change is the first situation which directly impact on employees
day to day activities in workplace at Ocado. Due to this situation, applicants are not feeling good
and they decide to resist accepting organizational change. At this circumstance leader by playing
their roles handle situation. They can communicate with each candidate to determine reason
behind resistance; this role is quite different from function of manager. For example, manager
make plans to solve a workers issue that is the main function of his or her role. They develop
plan and strategies in regard to organizational structure change after considering the needs of
applicants.
Situation 2- Lack of communication that creates conflict between worker and management
In context of this situation, leader plays their important and beneficial role by
understanding overall condition and then collaborating with seniors to solve current problem. In
order to build strong and effective relationship between Ocado management and applicants
within Ocado, leader communicates with staff and then shares their personal feeling and
requirement with management. This role is different from function of manager, for instance
instead of communication manager try to organize everything accordant to workers needs and
make plan to arrange small meeting where employers and employee meet together face to face
and share their issues, conflicts and thoughts with each other.
Range of models and theories of approach in leadership and their strengths & weaknesses
Situational leadership-
6

It is one of the best leadership forms in which leader assigns task and activities accordant
to his or her skills and knowledge (Ghazzawi, Shoughari and Osta, 2017). With this approach
leader can handle any situation by analysing overall circumstances and then making decision.
Strengths-
 Main strength and advantage of situational leadership approach is that it easily
recognized flexibility need. It helps to create environment where workers are motivated
to come forward and share creative ideas so that everyone can find better success.
 Other strength of this approach is that it helps to develop a comfortable and positive
environment for employees around workplace.
Weaknesses-
 This approach has less concentrate on long term needs and effectively focuses on
immediate requirements. This statement defines first weakness of situational leadership
approach.
 This style would not be able to work effectively in task oriented atmosphere, which
impact on desire outcomes and efforts.
Contingency leadership-
This approach is concerned with forms and conditions and effectively matching leader
skills and specific situation (Bachrach and Mullins, 2019). It emphasizes that leadership
effectiveness is totally dependent on matching leader leadership styles to correct situation. It was
actually developed by Fiedler after understanding different leaders in various contexts.
Strengths-
 Contingency leadership theory gives essential to leader comprehending, knowledge and
leadership forms and let them take effective decisions rely on many situations within
Ocado.
 It can aid in term of permitting a leader and company to select varied leadership styles
according to circumstances that help to obtain effective results.
Weaknesses-
 Contingency leadership approach is quite straightforward that not all situations can be
managed within a particular manner. When leader apply same in actual life situations
things do get a little difficult.
7

 One of the biggest weaknesses of this approach is lack of flexibility. It can be said that
without flexibility leader cannot be able to handle any condition and manage current
situation.
Systems leadership-
This theory is a set of capabilities and skills that any leader can utilize to analyze support
and enables procedure of systems level change. This approach combines coalition building,
collaborative and systems leadership theories insight to mobilize creation and action across a
wide, decentralized network.
Strengths-
 System leadership approach caters a holistic view of companies and emphasises on
adaptive nature, it helps to increase adaptability of Ocado to environmental
modifications.
 This theory concentrates on multiple dimensions of management that help to solve
current issues and take action to overcome in the future.
Weaknesses-
 System leadership theory is not being always practical in real situation and lead to delays
in decision making process that may be impact on business performance and employees
productivity.
 Another weakness of this approach is that it does not provide particular form of
functioning in Ocado to manager.
Critical evaluation in regard to different contemporary concepts on leadership and management
Management by objectives-
It is the best model which aims is to create productivity and performance of Ocado by
defining what aims are for supermarket, to assure that these objectives are agreed on and that are
achievable by both party’s administration and workers. It can be analysed that by applying this
concept, manager can be capable to assure that objectives and tasks that are set can have a more
methodical procedure to them. Workers can be fully assured of his or her accountabilities and
roles while accomplishing these objectives. This way can be seen as a positive method to
undertake for chosen company, as it can benefit employee in being capable to stay concentrate
throughout procedure which can assure growth for supermarket. This theory helps to improve
performance of firm and increase utilization of human resources. On the other hand, it has been
8

critically evaluating that management by objective model consume time and creates
organizational issues.
Behavioural theory-
In context of above two different situations, manager can use this concept which seeks to
explain person behaviour by examining consequences and antecedents present in individual
atmosphere. This theory is also known as human relations movement because it addresses
workers dimension of work. It guides manager to create productive working environment at
workplace and comprehend their employee’s behaviour at work which make them capable to
motivate staff and resolve conflict. The best thing about this model is that it helps to address key
queries on firm leadership styles and also aid to determine leadership or management style of
manager. Behavioural theory of management is a learning procedure and takes time to provide
results in any situation.
SECTION 2
Explaining the Key Approaches to Operations Management Within Ocado and the Major Roles
that Managers and Leaders Within the Organisation Play
There exist various different key approaches to operations management within Ocado,
with the most important of these approaches to operations management within Ocado being
discussed below. The management and leadership of Ocado have implemented these approaches
into the operations of the retail business organisation, playing appropriate roles towards all such
key approaches to operations management within Ocado. The different approaches to operations
management and roles of its managers and leaders is discussed below:
 Total Quality Management (TQM):
Total Quality Management is a key approach to operations management within Ocado, as
this operations management approach helps the managers and leaders of the business
organisation to control the overall quality of the goods and products that are manufactured by the
retail business organisation so that the business organisation is able to effectively satisfy all the
varying needs, requirements, demands and preferences of their customers within the retail
industry of UK (Gibson and Parkman, 2018). Both the leadership and management of Ocado are
required to play key roles for this operations management approach to be successful
withinOcado. For example, Ocado’s manager is required to prepare a dedicated plan relating to
9

systematically implementing this operations management approach in the manufacturing process
of the business organisation. The final decision making power and responsibility relating to
implementing this approach resides with the manager of Ocado. The manager orders and guides
leaders within Ocado for effectively implementing TQM approach to the manufacturing
operations of Ocado.
Contrastingly, the leader is also required to play key role for the successful
implementation of TQM approach organisational wide within Ocado. Ocado’s leaders are
responsible for taking orders from the management towards effectively implementing TQM to
the manufacturing operations of the business organisation. After TQM has been successfully
implemented organisational wide within Ocado, its leaders are responsible for training, teaching
and mentoring the employees and workforce of the business organisation with regards to
controlling the overall quality of the manufactured products and goods of Ocado. Leaders of
Ocado are also responsible for providing the management of business with outcome reports
based on their overall achievements through the TQM approach within Ocado.
 Just in Time (JIT):
Just in Time approach of operations management can help the business organisation save
crucial organisational resources and decrease operational costs attached by placing increased
emphasis on avoiding or eliminating wastage during the manufacturing operations of the
business organisation. Both Ocado’s leaders and managers are required to play key roles for JIT
approach to be successfully implemented organisational wide within Ocado. The managers of
Ocado are required to allocate sufficient funds towards the manufacturing operations of the
business organisation for JIT to be effectively and successfully implemented (Reid and Sanders,
2019). The manager orders raw materials and supplies from various external suppliers with the
intention to save or decrease operational costs and make optimum use of organisational
resources.
Contrastingly, the leaders within Ocado also play key and vital role for the successful
implementation of JIT within Ocado. The leaders of the business organisation are responsible for
preparing a list of organisational resources such as goods, supplies, items that are required and
essential for the manufacturing operations of the business to be conductedsuccessfully. After the
list has been created, the leaders of Ocado pass on the list to the business’s management, as the
managers are responsible for contracting suppliers and procuring required materials detailed in
10

the created list. The leaders within Ocado also guide, train and mentor the employees of the
business organisation with regards to using JIT approach in the most effective and successful
manner within the business organisation.
 Lean Production:
This is another key approach to operations management within Ocado, that has the
potential to significantly enhance the overall performance and productivity of the business
organisation and its manufacturing operations. Boht the leaders and managers of Ocado play key
and vital roles for this approach of operations management within Ocado to be successful (Hitt,
Xu and Carnes, 2016). The managers of Ocado are responsible for taking decision that are able
to remove aspects and factors from the manufacturing operations of Ocado that decrease the
overall performance andproductivity of the business organisation.
On the other hand, the leaders within Ocado are responsible for taking the decision made
by the managers of the business organisation of implementing lead production approach of
operations management within the business organisation by preparing dedicated productive plan
with the intention to make the employees of the business organisation aware about the lean
production approach to operations management. The employees and workforce of Ocado are
dependent upon the business’s leadership for guidance relating to the implication of
organisational change through lean production approach, within business organisation.
Evaluating the Value and Importance of Operations Management in Ocado Achieving its
Organisational Business Objectives and Goals
Operations management carries immense value and importance within Ocado in relation
to the business organisation becoming capable of effectively accomplishing the organisational
objectives and goals created by its leadership and management. Effective operations
management operations of Ocado allow for the business to effectively achieve its created
organisational objectives and goals for the successful operations of the business organisation
within the retail sectors of UK. The evaluation of why operations management carries such
immense value and importance within Ocado is as follows:
Improved Product Quality: Operations management contributes significantly towards the
successful operations of business organisations such as Ocado because this allows for businesses
to increase the overall quality of the goods and products manufactured by the business
organisation, allowing for the businesses to provide increased value to their customers within the
11

retail industry of UK (de Sousa Jabbour and et.al., 2019). Approaches of operations management
within Ocado such as the Just in Time approach and the Total Quality Management approach
contribute immensely towards controlling and enhancing the overall quality and value of the
goods and products manufactured by Ocado within the retail industry of UK., which is
immensely beneficial for the overall success of the business organisation and allows for it to
accomplish its organisational objectives and goals and an effective and efficient manner.
Enhanced Customer Satisfaction:Approaches of operations management within Ocado are also
highly important as they contribute immensely towards enhancing the overall ability of Ocado to
provide their consumers with increased levels of satisfaction through the goods and products
manufactured by the retail business organisation. Through operations management, Ocado is
able to manufacture goods and services that are able to effectively satisfy and meet the varying
demands, requirements, needs and preferences of their consumers within the retail industry of
UK, allowing for the retail business organisation to effectively satisfy their consumers and
generate increased amounts of profit margins through such endeavours (Fettermann and et.al.,
2018). The increased consumer satisfaction also allows for Ocado to gain the long term loyalty
of their consumers, which further contributes to making the operations of Ocado successful over
a sustained period of time within the retail industry of UK and allows for the business
organisation to effectively accomplish its organisational objectives in an efficient manner.
Increased Brand Value: Another reason as to why the operations management is highly
valuable and important within Ocado relates to this increasing the overall value, reputation and
awareness of the Ocado’s brand amongst the consumers within the retail sector of UK, which is
immensely important for the successful operations of the business organisation. As the retail
industry is extremely competitive, with numerous business organisations directly competing with
Ocado for productivity, profitability and market share metrics, operations management
increasing the overall brand awareness, reputation and value of Ocado is of immense importance
and value towards the overall successful operations of the business organisation (Ivanov,
Tsipoulanidis and Schönberger, 2017). Enhanced brand awareness, reputation and value metrics
allows for Ocado to easily and efficiently acquire new customers from the external environments
and contributes immensely towards increasing the overall productivity and profit margins
generated by the business organisation within the retail sector of UK.
12