Operational Management: Leaders, Managers, and Corus Steel Analysis

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Management Concepts
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INTRODUCTION
Operational management refers as the management of set of activities that are involved in
production process for achieving the positive outcome. This process contains number of business
practices like arranging, planning, administrating and managing (Barratt, Choi and Li, 2011).
The present report focuses on Corus which is part of Tata Steel group that work toward
manufacturing the steel in UK and Netherlands. This report covers detail about the role of
leaders and manager within organisation supporting with several theories and model. Despite of
that it also includes detail about key approaches to operational management, its significance
along with the influence of business environment on operational management and decision
formation of leaders and managers.
TASK 1
P1. Comparison between role and functions of leaders and managers
Operation management is defined as a management section that consists of formulating
and management of production process and redesigning of business operations while product or
goods and services. It plays a crucial part within Corus in term of enhancing efficiency that
contribute toward improving the overall profitability of a company. In this area, both leader as
well as manager are consider to be very important in achieving the goals within specific time
period.
Leader:- As per Burke, (2013), leaders is a person who hold up the capability of
influencing the group of people in order to align their work toward the achievement of goals and
objectives as they work toward inspiring the people to work in particular manner. On other side,
according to Susan ward, 2019, an effective leader is one who work toward managing the
resources in effective manner by proceed them in right direction by inspiring, communicating
and supervising.
Manager:- According to Chen, (2011), a manager is an individual who held liable for
managing and controlling the work performed by employee in order to direct their work t6oward
the accomplishment of organisational goals. On other hand, according to F. John Reh, 2019,
manager within an organisation act as a bridge between the higher authority by translating the
higher level strategies as well as objectives in operating plan which drives the business. In
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addition to this they are also responsible to ensure the work performed by lower level, must be
up to the mark so that desired objectives can be achieved.
Differences between leader and manager
Basis Manager Leader
Characteristics
Visionary Managers do not set visions
they only formulate action
plans. Manager of Corus
formulate plans and policies
for the accomplishment of
goals which guide the
employees to work toward the
attainment of pre specified
goals.
Leaders set visions for
inspiring people to achieve
something. The leaders of
Corus develop vision and se
targets for each employees so
that they get succeed in their
goals (Chen and et. al., 2010).
Risk taker Managers of Corus mainly
formulate strategies in order
to minimize risk by focusing
on controlling and avoiding
the problems for smooth flow
of operations.
Leaders always willing to take
risk by trying new things. In
order to ensure continuous
development within
organisation leaders of Corus
focuses on brining changes as
per the demand and scope of
future market to perform best.
Role
Change Main role of Corus managers
is to formulate strategies
according to changes
anticipated in organisation to
aligned the efforts toward
required performance standard
so that competitive advantages
Leaders of Corus put more
emphasise over influencing
people to invite changes in
their current operation to make
it more effective and regular
development of employees
along with organisation
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can be achieved (Cruz and
Marques, 2011).
become possible.
Conflict Managers of Corus are also
responsible to handling the
conflicts arises between the
employees and for this they
assign work to employees as
per their capability to avoid
conflicts.
The leaders of Corus uses
conflicts as an asset by
converting destructive conflicts
into constructive from bringing
most positive outcome and
develop an environment of
learning (Galindo and Batta,
2013).
As per the above presented information it is clear that manager and leaders are two
separate entity in term of their working and managing style which contribute toward improving
performance. It can be also understood by taking an example of Corus focus toward continuous
improvement in order to support new product development for fulfilling customer’s changing
need (Giegerich, 2010). At this stage the leaders work toward inspiring the employees about
accepting changes as it is good for productivity and on other side managers work toward
ensuring the work performed by employees must be in specified standard.
Despite of the differences that leader and manager hold in their working pattern there are
certain similarities also which is mentioned below:-
ď‚· Both the manager and leaders of Corus work toward providing the guidance as well as
supervision to employees and ensuring work performed in right direction.
ď‚· Another similarity is that both manager and leaders are responsible for maintain effective
communication with workers to ensure smooth flow of work. In addition to this both
ensures employee performance as per fixed criteria.
TASK 2
P2 Role of a leader and function of a manager
Managers and leaders within the organisation perform several operations in order to
administrate and manage the work of employees in effective manner. While performing
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operations there are certain situations which get arises in front of managers and leaders of Corus
that are required to be manage effectively as it direct affect the employees performance. For
dealing with this several leadership and management theories are implemented within Corus for
ensuring effective flow of work. Some situations found in Corus are explained below:
Situation Description Role of leader Role of manager
Stable
situation
In this situation plans of
company and need of
employees doesn't change
frequently. This situation is
mainly occur when the Corus
doesn't get much order for
steel manufacturing.
In stable situation
leaders of Corus
focuses toward
motivating and
keeping employees
prepared for future
challenges.
In this situation the
managers of Corus put
more emphases toward
the quality of work so
minimising the
chances of error in
work.
Moderate
situation
It is a situation where changes
are bring within the
organisation according to
changes anticipated in
external factor. This situation
is mainly faced by Corus
when technology used in
production get updated.
Under this the leaders
of Corus focuses
toward guiding and
directing the
employees regarding
the use of technology
for boosting up their
confidence (Ivanov,
Sokolov and Kaeschel,
2010).
Under this the
managers of Corus
focuses toward
providing training to
employees and
ensuring they work get
performed in right
direction.
Fast change In this condition the strategies
and plans get changed
frequently because of
continuous changes within
external environment. This
situation is mainly faced when
the order for steel
In such situation the
leader of Corus work
toward encouraging
employees for being
adoptable to changes
made within
organisation so that set
Manager of Corus
work toward
formulating strategies
for directing the
employees work in
right manner by
ensuring proper
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manufacturing in different
types get arose.
goals get
accomplished.
monitoring and
controlling (Jacobs,
Chase and Lummus,
2011).
P3 Different theories and models of leadership
Leadership is defined as group of activities conducted by a leader for guiding and
directing the individuals toward the accomplished of organisational goals. For achieving this
leaders conduct several actions such as setting visions, motivating workers and enhancing their
moral. In order to perform leadership practices effectively several leadership theories are being
implemented by Corus which are mentioned as under:
ď‚· System leadership theory:- According to it, leaders must focuses toward developing an
environment within the organisation which help in fostering and motivating employees to
work productively according to potential. By this theory, the leaders of Corus try to
determining the nature of employees for developing model of leadership, organisational
strategy, system design and social process (Kang, 2010).
Strength Weakness
This leadership style help the leaders within
Corus in performing their operation within
systematic manner
Main drawback of this theory is that it requires
Corus to invest more time and fund to get
implemented within the organisation
ď‚· Contingency leadership theory:- It defines that the efficiency of leadership relays on
adaptability of leadership style according to condition exists in front of them. For
example, leaders of Corus should adopt participative leadership style in case when
workers feel less involved or are not satisfied with the job.
Strength Weakness
This style provides information regarding the
skills of leaders and support in formulating
effective leadership chart which ensure better
For implementing this style, Corus requires
highly efficient leaders so that situation can be
understood in effective manner.
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planning as per situation
ď‚· Situational leadership:- This leadership style state that leaders must adopt a particular
style as per the performance need of individual which leaders are trying to attempt.
Situation leadership style help a leader in remaining flexible to their work and be
adaptable to situation in order to provide support employees in dealing with particular
situation effectively (Lind, 2013). For example, in fast changing environment leaders of
Corus can use autocratic to implement changes effectively this support them in directing
the decision over which employees have to work for implementing changes.
Strength Weakness
Main strength is that it provide flexibility to
leaders in term of adopting managing style
suitable as per employees need and
requirement.
Main weakness of situational leadership is that
it need more time for evaluating the need of
subordinates and creating strategies for leading
them.
ď‚· Relationship-oriented Leadership theory:- It describe about a leader who is primarily
motivated by and more concerned toward interaction with different people. These leaders
mainly act as mentor for subordinated, schedule time for employees and incorporate their
feedback into decision. With the help of Relationship-oriented approach leaders of Corus
able to create a positive working environment that leads to continuous development.
Strength Weakness
The main strength of this leadership style is
that it help in bring leaders and subordinate
together. This will support Corus in improving
group dynamics among employees.
The weakness of this approach is that it is a
time consuming process and not always proves
to be right in task-oriented environment. It may
affect the working performance of Corus.
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TASK 3
P4. Role of leaders and managers in key approaches to operational management
In order to improve its operational practices, Corus adopted several approaches of
operation management for improving the overall efficiency or production for minimizing the
waste, smooth operations of business and focus over the need or want of consumers. While
implementing Continuous Improvement program it focuses toward several operation
management approaches for improving performance. The basic approaches adopted by Corus are
mentioned below:
Lean production:- It is refers to the operational management approach which ensures
that the production must be made as per the demand over particular period. The lean production
is adopted by Corus in order to minimise the wastage, ensuring smooth flow of operations and
diverting the focus of business toward consumer need (Mendis, Muttaqi and Perera, 2014). The
manager's role i.e. to manage employees work in a way that help in enhancing the productivity
and profitability of Corus and eliminating waste within seven key area such as transport,
inventory, motion, waiting times, over-processing, over-production and defect. On other side
role of leader is to keep employees motivated toward contributing in improvement process.
Just-in-time:- It defines as operational management approach where products usually
produced or get supplied at the time it is needed. In this approach the business holds minimum
quantity of raw material and just enough finish good that help in meeting up the demand at that
time. Under this approach the role of Corus leaders is to identify the problem to work over
improving this in reducing the cost and improve the investment that the shareholders get. The
manager is responsible for interacting with employees timely manner regarding the activities
they required to perform.
TQM:- It is structure approach which emphasize on enhancing the organisation's
outcome by focuses over improving the internal practices continuously (Nakayama and Bucks,
2012). In this approach the role of leaders within Corus is to implement the TQM practices
effectively in different business processes for satisfying the customer expectation regarding the
quality of product or services. On other side the Corus managers are responsible for
communicating about the benefit of TQM to all the employees.
Six Sigma:- It refers to a technique which is help in regular improvement within a
company by getting most positive outcome. This is basically done by determining and removing
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the errors in order to reduce the variability in operations as well as manufacturing process
(Shuxin, 2011). The major role of a leader of Corus is to develop the goals and use approaches
in effective manner for achieving business objectives. On the other side the manager of Corus
plays a crucial role within fostering and creating the environment that creates a phase for success
of employees.
Queuing theory:- This theory work over examining each components or processes that
are in line for completion. It is a branch of operations research which support in making
informed decision regarding efficient and cost effective workflow system. Queuing theory will
help Corus in developing a more efficient queuing system, pricing mechanism, process, arrival
management strategies and processes that support in reducing the customer waiting time and on
other hand help in enhancing the customer base. In this the role of a leader is to ensure that the
resources and processes required to be performed must be ready in queue at the time of execution
for cost effective operations. On other side the role of a leader is to motivating and directing the
work of employees in right direction.
These are the basic approacher of operational management which can be used by the
Corus in order to bring cost effectiveness in term operation with the reduction of wastage and
enhancement of efficiency of work. This in turn also support in promoting a culture of regular
development as employees become able to perform maximum utilisation of resources even if
their is regular changes and improvement in business practices for enhancing efficiency.
P5. Operation management's importance and value
Operation management is refers to as a procedure that involves the production within a
company. In Corus the main aim of operation management is to ensure that the products or
services manufacture within the organisation must be of high quality. The major significance of
operation management is mentioned below:
Inventory management:- The effective operational management support Corus in
managing its inventory in effective manner as by effective implementation of just-in-time
approach it become easier for the company to manage customer demand (White, 2016). This is
because with the help of just-in-time approach the Corus become able to make products available
at the store as demanded by customers. This can be done with the help of evaluating current
consumer purchasing behaviour that contribute toward predicting the future demand.
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Minimising wastage:- The appropriate use of operational management approach support
Corus in minimising the wastage as it focuses toward demand evaluation that are present in
market and then manufacturing accordingly. This not only help in minimising the wastage but
also contribute toward reducing the cost which in turn enhance the productivity and profitability
of Corus.
Scheduling:- Operational management also support in scheduling the tasks according to
capability and skills of employees regarding completion of work. This will support Corus in
ensuring that each operation must perform in timely manner which brings in efficiency as well as
improve the productivity of organisation.
Therefore, operational management support in improving the quality, productivity and
profitability of organisation. But in order to achieve this it is crucial for the Corus leaders to
make utilisation of their skills and beliefs for motivating employees by becoming their idol in
order to promote a culture of higher quality and productivity by ensuring continuous
improvement within organisational practices (Kang, 2010). In addition to this the managers of
Corus must also focuses toward assigning task to employees as per their capability in order to set
goals for individual, organisation and team.
Despite of the operational efficiency, for making employees aligned toward their job
roles and responsibilities its is also crucial for the manager as well a leaders to keep employees
motivated toward their work. For bringing operational efficiency among employees following
methods can be adopted by leaders and managers of Corus:
ď‚· Providing incentives:- To enhance the employees efficiency the leaders and managers
of Corus can set up the incentives on the performance level and quality of work
presented by employees. It support in keeping them dedicated toward work by
encouraging them to work more efficiently.
ď‚· Regular training:- For improving working quality the managers of Corus can develop
training program for employees in order to provide them opportunity of improving their
skills and capabilities. This in turn support them in learning new techniques of
performing work efficiently.
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TASK 4
P6 Impact of business environment on operational management and decision making
The performance of an organisation is highly get affected by the challenges that are
present at external business environment that are required to be manage for ensuring the
sustainability of organisation at market place. Hence there is requirement of active role played by
management of Corus in managing business operations in effective manner. When operations are
performed in specified manner, then it is easy to provide satisfaction to stakeholders and able to
maintain positive and long relations with them.
Corporate social responsibility:- This is one of the most crucial part of an external
environment management which is a kind of legal policy where each organisation has to provide
a percent of their profit toward the development of society. It also support in creating a positive
brand image in front of stakeholders. But in order to implement CSR practices it is crucial to
involve employees in such activities as they are one who are behind the achievement of
organisation. The implementation of CSR practices affect the decision making of managers in
Corus as they have to formulate policies for such activities to be performed by employees. On
the other hand the leaders of Corus are responsible for motivating employees and regularly
evaluating their working for ensuring the implementation of CSR practices.
Ethics:- It refers to the moral principles which support a person, group or organisation to
perform actions in right manner which do not harm others. In order to achieve competitive
advantage, Corus must ensure that the operations performed by the employees must be
performed in ethical manner i.e. by considering all the legal laws and standards. It also affect the
decision making of manager as they have to formulate action plans and policies by involving all
the ethical practices that are required to be adopted by the employees. On other side the leaders
of Corus also required to formulate decision regarding their motivation and guiding practices for
aligning the efforts of employees in right direction so tat ethical practices can be performed.
Value:- The value of an organisation is basically created by the quality of performance
employees present in operations of organisation and satisfaction that customers gets through
services. The value that an organisation have in marketplace has a huge impact over operation
management of Corus. Hence for enhancing the value of Corus at marketplace, the managers
have to formulate effective strategies that support in improving the quality of product by efficient
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working of employees. But this quality can't be achieve until the leaders provide the employees
of Corus with right direction to move over the strategies formulated by the managers.
Culture:- The culture in which an organisation work also influence the operations
management. This is because for performing operations in particular culture the adoption is very
crucial for an organisation. It directly influence the decision making process of manager as they
have to arrange the working structure or practices of employees in a manner which help Corus in
keeping align with the cultural requirement. On the other side the leaders of Corus are
responsible for ensuring that each employees get adjusted with the cultural requirement and be
able to perform operations in effective manner by regularly evaluating their performance.
Sustainability:- It is one of the most challenging task for each organisation i.e. to
achieve sustainability within the marketplace or external environment by dealing with the
competition, challenges and changes which get anticipated by the stakeholder of organisation.
The sustainability practices also have great influence over the manager's decision making
practices within Corus as they have to ensure that each employees work over the criteria which
support them in offering high quality product or services that have the capability to deal with
competition and changing demand of customers. On the other side the leaders of Corus have to
take decision regarding guidance provided to employees for making regular improvement in their
practices to achieve competitive edge.
By involving these practices in effective manner Corus become able to develop a
competitive edge at marketplace and be able to fulfil the expectation of stakeholder which they
have toward the company. This is so because the expectation of stakeholder can be fulfilled only
when the Corus perform ethical practices, performing CSR, creating value and working with the
cultural requirement which can only be possible for the Corus when leaders and managers
maintain better relationship with employees and motivating them to work in effective manner.
CONCLUSION
On the basis of above described information, it has been concluded that management of
operational activity of business organisation is termed as an integral part of every organisation as
it supports them in their success. It also get found that both the leaders and manager plays very
essential role in the success of company. Contingency leadership approach is considered as an
effective approach that is beneficial for large scale companies as it contributes in managing all
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issues effectively. Regular based training and incentives are identified as best motivation that
could be given to employees for enhancing their performance.
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