Detailed Analysis of Management Operations at Procter & Gamble Report

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This report offers a comprehensive analysis of management operations at Procter & Gamble (P&G). It begins by defining and comparing the roles and characteristics of leaders and managers within the organization. The report then examines how these roles apply in various situational contexts, including slow, stable, and fast market growth scenarios, highlighting how P&G adapts its leadership styles. Furthermore, the report applies different leadership theories and models, such as situational leadership, systems leadership, and contingency theory, to the context of P&G's operations. It explains key approaches to operations management, including lean principles, total quality management, and Six Sigma, and discusses the roles of leaders and managers in implementing these approaches. Finally, the report assesses the factors within the business environment that impact operational management and decision-making, concluding with a reflection on P&G's strategies. The report emphasizes the importance of effective management and leadership in achieving business objectives within the dynamic environment of a multinational company like P&G.
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Management and
Operations
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P 1 Define and compare different roles and characteristics of a leader and a manager.........3
TASK 2............................................................................................................................................5
P2: Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts..................................................................................................5
P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency....................................................................................................6
TASK 3............................................................................................................................................7
P4 Explain the key approaches to operations management and role that leaders and managers
play.........................................................................................................................................7
P5 Explain the importance and value of operations management in achieving business
objectives................................................................................................................................8
TASK 4............................................................................................................................................9
P6 Assess the factors within business environment that impact upon operational management
and decision making by leaders and managers.......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
The term 'Management' can be as a process of controlling the affairs of organisation,
process of administering, planning, organizing and allocating the resources. It acts as guidelines
to group of people working towards attainment of common goal. Operations refers to working
and managing the inner workings of a business to run the enterprise proficiently. Definition of
the operations depends upon the type of industry. Operations and management are areas which is
chiefly concerned with coordinating and managing in concern of production and manufacturing
of products. It ensures that an organisation is successful in turning its outputs efficiently. This
report is based upon management and operations of Procter and Gamble (P&G) which provides a
wide range of personal care/ health, home care, family and baby products it also includes
portfolio of food, snacks and beverages. This report includes roles and characteristics of leader
and manager, role of a leader and function of a manager, theories and models of leadership,
importance and value of operations and management in achieving business objectives, and
factors of business environment that impact upon operational management and decision-making
by leaders and managers and also includes conclusion with context with 'P&G' a multinational
health care company.
MAIN BODY
TASK 1
P 1 Define and compare different roles and characteristics of a leader and a manager.
Manager:
Manager plays a crucial role in management of employees. They perform functions such
as planning, staffing, organizing, directing and controlling in organisation. These functions are
necessary to run an enterprise smoothly and achieving targets. Managers are responsible for
making plans and strategies for achieving the objectives(Brown Jr 2017) . In reference, to P&G
managers are responsible foe managing and controlling the company by which it has got success
in achieving its objectives successfully.
Leader:
Leader is a person is a person who leads the team, take care of its employees and
motivate them to increase their performance which results in better output. A leader must be a
person who helps in management of work, one who can motivates , connect people and ideas to
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each other and a good communicator which can keep organization properly informed and active.
In reference with P&G leader of this company is a skilled team leader who has capability to
influence and motivating the employees to achieve their targets and increasing output.
Differentiate between leader and manager:
Basis Leader Manager DefinitionA leader is defined as a person who thinks strategically
and simply so that everyone in the organisation can understand and manages better outcomes.
In order to increase productivity leaders motivates the employees. Manager is defined as a
person who is responsible for getting the work done as targeted in a organisation. A manager
have control over all activities assigned to him. It also shows right path and helps in achieving
objectives and goals assigned to employees.
Role
The role played by leader of P&G are:
The role of leader is to take care of the work in company that must be conducted in a
right direction (Femminella and et. al., 2020) . The leader of P&G has taken care of products of
the company by which employees are working in a right direction. The role played by manager
of P&G are:
The role of manager is to manage and coordinate the employees. They take care of the
work given to employees and provide directions to employees to complete their tasks in given
time. The manager of P&G is accountable for ensuring the work done in time.
Characteristics
Innovative: The leader of P&G must be innovative who can give freedom to others to
develop their ideas which by which improvement can be made in the products.
Decision-making skills: The leader of P&G must be a good leader and decisive who can
examine problem and situation before making decision and reached at conclusion which is
beneficial for the company. Confidence: The Manager of P&G must be confident and effective
to manage the working of the company efficiently.
Time management: The manager of P&G must have command in time management.
They should make sure about time allotted for specific task must be enough.
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TASK 2
P2: Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
Role of a leader is different from the role of manager. After analysing the trend and
condition of market, decisions are to be taken and leaders are the persons who take effective
decisions and motivate their team members. Slow, stable and fast, are the various situations
through which every organisation has to be passed. Under various situation, leaders & managers
of the organisation have to take different decisions. Internal and external, both environments are
being emerge because of these changes. Policies and rules of P&G, controlling, planning,
process, machinery etc. are the internal environment changes which are being affected by the
decisions and changes made externally (Fu, Y. 2018). For completing the work in efficiently and
effectively manner, P&G organisation is using supportive leadership style. According to this
style, leaders gives full support to their team members to done the work in affective way or the
members can perform well. The decisions taken by managers and leaders of P&G is always
taken by keeping the objective of organisation in mind, also changes focus on the needs of
employees. Many times P&G firm got affected by the external changes, which are not in control
of organisation. It can be political changes, legal changes, socio changes, economic changes etc.
Sometimes, these changes gives good opportunity to the company and sometimes it gives a huge
loss. For instance, World's lock down in 2020 announced by the government, gives loss to the
company.
Following are the various situations of P&G
Slow Growth and development of any organisation is totally depend on the profit earned
by them. It is well known that the growth of P&G is slow, so the managers and leaders are also
slow while making decisions for them which result is less profit. Less profit means less market
growth. Internal changes of any organisation always show its result on external changes.
Stable: At this stage, P&G's growth and development is stable. Any type of change in
market of P&G company will not bring any change in revenue earned by the organisation. At
this situation, company can take any instant decision for their growth in the market. This
situation gives the proper chance to management to analyse the market conditions.
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Fast: This situation is too risky as the market trends are changing rapidly (Goodall et. al.,
2019). At this stage, mangers and leaders of P&G have to instant changes and these instant
decisions and changes are too risky, either they can result in huge loss or huge profit.
P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency
Leadership plays an important role in any organisation. It help the organisation to achieve
the organisational goals and targets. Leadership is a process in which a person (leader) motivate
a group of people to act towards achieving common goals. U.S. Army 1983 states that Leaders,
followers, Communication and situation are four primary factors of leadership.
Situational Theory: This theory was created by Paul Hersey and Ken Blanchard in 1969
while they were working on management of Organisational Behaviour. It is completely based on
the relationship between leaders and their team members. Situational Theory provide a
framework to leaders to analyse the situation and how to deal with that situation. It is the
responsibility of leader to handle their team members in any situation. Situational theory has 4
leadership styles i.e. Telling, selling, participating, delegating. Leaders of P&G makes decision
which help to solve any type of conflict between team members.
Contingency Leadership Theory: Contingency leadership theory is also known as
Fiedler's Contingency Theory. In 1958, Fred Fiedler gave Contingency theory of leadership. In
this theory he state that success of any manager or leader is not depend only on his/her ability.
There are lots of factors that helps the leader to be a successful leader like employees effort,
work environment etc. In P&G, leaders provide complete and proper instruction or directions to
their employees, so that the employees help the leader to be a successful leader or manager. This
leadership theory makes Leader Member Relation strong. It also improves Task assigning
structure.
System Leadership: It allows the leaders of an organisation to create such conditions where
people of all levels can work adequately to their prospective. This leadership was developed by
Dr lan Macdonald. Basically this theory focus only on the result in lieu of process or steps
(Hassan and et. al., 2019) . The process of doing work in any organisation are already planned
earlier and their result are also being decided by the organisation. P&G is a huge organisation
which contains a large number of departments. They are using this theory by pre deciding goals,
targets and objectives of every department.
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TASK 3
P4 Explain the key approaches to operations management and role that leaders and managers
play.
The term operation management refers to the firms’ administration which helps in
increasing the efficiency by managing the operations in business practices. It is concern with
planning, organising and supervising the production, manufacturing and other provisional
services. Which helps the firm into give the results in efficiency? It plays an important role in
transforming the labour and raw material into goods and services for customers, which will be
helpful for the firm to enhance their business and generate the high profits. In context to Procter
and Gamble, it is essentially required for the firm to have management operations to carry out
their business in a better way (Kim and et. al., 2019). It is important for the growth of the
organisation as to helps in making the finished goods from the raw material with optimum
utilisation of available resources. For improvement in performance the Procter and Gamble uses
different approaches to operations and management which are as follows:
Lean Principle: It has become the main stream in the market and it can be used to
interchange with the Justin-Time Production. This talks about the constant improvement in
process of production so that their will be less waste and helps in maximize the output at low
cost. It is the study of the customers by which they can do there work on prescribed time. With
context to Procter and Gamble, they use this principle to improve the stratification of customers
by providing the good quality of products and services. For this they have recruited the skilled
employees in there organisation.
Total quality management: This approach of operation management helps in targeting
the long term success by building the satisfaction of the customers. This approach helps in
proving different strategies of plan for production by maximum utilisation of resources with zero
waste of things. With reference to Procter and Gamble, the firm use to upon the quality of
products. They focuses on the quality of workforce so that the work can be carried out in the best
manner. There main target is get the customers sanctification. They work on the better quality of
goods and services while reducing the amount of waste that they can do. The organisation
employees a skill full persons.
Six sigma: This operations management approach is used to improve the quality and cost
reducing methods which aims on the satisfaction of the customer's. This helps in reducing the
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amount of mistakes which can be made by the firm. It helps in analysing and grabbing the
opportunities which are present in the existing market. With the context of Procter and Gamble,
they uses these techniques for various manufacturing of products in their company, with good
quality, quantity of products.
P5 Explain the importance and value of operations management in achieving business objectives.
Operations plays an important role in enhancing the business of the firm. It helps in
increase in the productive of the goods and services with the help of control and supervise the
work. With reference to the Procter and Gamble, it is the largest manufacturing company across
the world. They work on the bases of reducing the wastage and ensure that resources must be
fully utilized in the specified manner (Pishdad-Bozorgi and et. al., 2018). There are some
approach which helps in identifies the importance are as follows:
Planning: it is the major function of the organisation in which the managers designs the
plan in the effective manner, which is used by the firm for generating the efficiency and raise
revenues. In Procter and Gamble, uses this for increasing the production and improve the level of
performance of the workforce. It can be also says that, it is the primary activity which the
organisation has to do and plan the future activities which the firm has to do for achieving the set
targets.
Organising: Managers has to organise the plan and work upon it. In context with Procter
and Gamble, they use to work in a systematic manner to achieve there set goals. It is important to
execute this act because this will helps in achieving the targets of the organisation.
Directing: in this the organisation's leader has to direct the there staff in the manner so
that they can easily approach to their set goals. With references to Procter and Gamble, the
leaders and managers direct their team to do the work in the manner by which they can easily
achieve there goals with zero waste of resources.
Controlling: The controlling talks about, the way in which the leaders has to control the
affairs of the firm so that they can easily get the goals. In Procter and Gamble , the supervisor
has to keep an eye the performance of the employees in company(Xu, and et. al., 2021). Which
helps the firm in the improvement by the guidance of them and achieve the objective of the
firms.
Product Quality: This is the main element of operation management, as it helps to gain
the customers satisfaction. The customers wants the quality of the product to be appropriate
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according to the asked price. With the reference of Procter and Gamble, they uses to manage the
companies image in the marketplace by maintaining the quality of goods and services they are
providing. This will helps in building the customers emotional state towards the company.
Customer Satisfaction: every firm has to focus on the satisfaction of their customers. For
the same Procter and Gamble has aim on gaining the higher level of satisfaction and maintain the
faith towards the organisation which helps in achieving the good amount of profits.
With the above mention points, the Proctor and Gamble has focus on achieving the target
of the firm but the foremost target should always be the satisfaction of their customers. They has
to manage the process of production and helps the firm in providing better services to the
customers. This leads to the increment in the profitability and efficiency of the firm.
TASK 4
P6 Assess the factors within business environment that impact upon operational management and
decision making by leaders and managers.
The term 'Business environment' means total of all things external forces, factors and
institutions that control and affect the enterprise. These includes suppliers, competitors, social,
legal and many other factors. These internal and external components of the business
environment are is analysed to survive and get success in business industry and to face
environmental threats. Many decision taken by leaders and managers that impact upon business
environment which are discussed below:
Financial Status: The financial status of P&G helps the leaders and managers to make
such plans and strategies by which organisation can work in a proper way and direction. The
products offered by P&G are effected by cash flow, profit earned and many other financial
factors. The decision related to cost of the products is also taken by leaders and managers
according to business environment.
Market trends: Market trend is also a factor which impact upon P&G a multinational
health care and hygiene company. Every day new trends come to the market and being evaluated
by market forces and company has to change and innovate its products according to changing
trends in the market. The market trends are analysed properly by P&G to get success in the
market.
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Legal and Political changes: Legal and political changes affects the decisions of the
organisation taken by managers and leaders of P&G company. Changes made in political and
legal structure of the country can effect the policies imposed on P&G. So, to predict future
changes leader make future changes and manger is responsible for arranging the resources.
Resources of organisation: Many resources are available to P&G as it is a one of
multinational company. These have resources such as a good quality of raw material and skilled
labour which works efficiently (Wang and et. al., 2020). Resources of the company are managed
by managers in a systematic and proper way which increases the production and profit of the
company. The performance and management of P&G ' s resources are managed and planned by
managers and leaders of the company.
Technological changes: Technological changes arise in external environment of the company. If
leaders and managers of P&G thinks that there will be futuristic technological changes can be
made then changes are adopted by P&G to work with changes occurs in technological
environment.
CONCLUSION
From the above report, it is concluded that, management plays an important role in any
organisation while operations. Leaders and managers have to take care of the challenges and
situations coming in the organisation and they have to prepare their team members to work
according to the decisions made by them. Furthermore it is analysed that the leaders and manager
of P&G are applying various theories of leadership while doing work with their team. It is found
that they are using centralized organisation structure for distributing powers among the
employees. Also it was found that the leaders of P&G are taking decisions very carefully, after
analysing the market situations, external changes of business etc. which result in achieving
organisational goals and targets.
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REFERENCES
Books and Journals
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Leiras and et.al 2019. Operations management for social good: 2018 poms international
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Xu, and et. al., 2021 Optimizing reservoir operations for tradeoffs between economic objectives
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