Analysis of Rio Tinto Operations: Management and Leadership Approaches

This report provides a comprehensive analysis of Rio Tinto's operations, focusing on its key operational functions, including refineries, mines, research labs, and data centers. It examines the roles and responsibilities of managers within these functions, highlighting their involvement in planning, supervising, and organizing various processes. The report delves into the operational approaches adopted by Rio Tinto, such as the Six Sigma, Just-in-Time, and Lean manufacturing methods, and how they contribute to increasing organizational efficiency. Furthermore, it explores the impact of external business environment factors, including technology, social and political conditions, competition, and the economy, on decision-making by leaders and managers. The report also discusses management and leadership approaches, such as relational, scientific, and participative leadership, that can improve operational efficiency. Finally, it offers recommendations for Rio Tinto to enhance its environmental contributions and management practices, with the ultimate goal of maintaining a strong market position.

MANAGEMENT AND
OPEARTIONS
1

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Key operation of Rio Tinto..........................................................................................................3
2. Operation function roles and responsibility of manager..............................................................3
3. Key approaches to operational management...............................................................................4
4.Impact of external business environment factor that affect decision making by leader and
manager............................................................................................................................................5
5. Management and leadership approaches that improve operational efficiency............................6
Recommendations............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7
2

INTRODUCTION
1. Key operation of Rio Tinto
Rio Tinto PLC’s is world largest metal and mining company in London, United Kingdom
it is the biggest mining operation company. It performs their operation around 35 countries
mostly in Africa, North America, Australia, South America, Asia, Europe and Central America.
It key operation in refineries, mines, research labs, data centres, development labs and sales
office and perform their work for the various operations. It operate in this own underground
mine, power stations, mills, smelters, service facility, iron ore and research. Its area of operation
is very wider for their customer to deliver the material its use their own ships, railways and ports.
2. Operation function roles and responsibility of manager
1. Refineries
The Rio Tinto operation for refineries function process and its operates in the different
countries it convert them it product which is saleable. The role and responsibility of refineries
function of the manager direct the compliance of environmental regulation and safety procedure
it manage production also monitor, planning, performance and process.
2. Mines
Rio Tinto mining operation function is to produce material like industrial mineral,
copper, gold, uranium and diamond etc. Manager role and responsibility is planning, supervising
and organising it also responsible for mineral and rock inspecting and check that mine for
danger, stone quality check and mines tunnelling or development.
3. Development &Research lab
It invest much amount for leading technology, research and development it function is to
regularly research something new to satisfy customer and it the technological world it uses
different technology its labour cost reduction also improve the efficiency of operation. Its
manager role and responsibility is research about the material, processes, evaluate and
assemblies and develop products, concepts and solution for achieving the Rio Tinto objective.
4. Data centres
To aid the Rio Tinto it have an own big data centres and its major function is to
increasing safety and production it attached sensor or mobile equipment to reduce engine
breakdown. Manager role and responsibility to inspect the data centres also manage.
3

3. Key approaches to operational management
Rio Tinto have own key operational approaches regarding their operational management
this helps to gather of management knowledge for the management. The Rio Tinto use these
operational approaches for increase their organization efficiency there are various approaches of
operational management are as follow
1. Six sigma approach
The six sigma was developed at Motorola from 1985 to 1987 this approach is mainly
determined on the quality. In the various organizations use this approach by the operational
management to increasing their organization performance and efficiency. This approach helps
the organization for quality control and through that produce output extraordinary (Gijo, Palod,
and Antony, 2018). In the year 1995 Jack Welch take initiative to adopt this approach it helps in
reducing cost, achieve financial target and increasing profits of the organization. The value of
this approach is attaining operational management for improved quality also through continuous
improvement in the organization six sigma approaches so get high quality result.
2. Just in time approach
Rio Tinto uses this approach for the operational management it is the management
strategy regarding the inventory system with the schedule of production so order directly to
supplier for raw material. Taiichi Ohno is develop the just in time manufacturing management
process. Organization use this approach for reducing the inventory cost because whenever the
company need raw material for the production process so it available by that strategy inventory
waste is reduce and organization efficiency is increases the producer use this strategy to
accurately forecast demand (Barkhordari, and Denavi, 2017). This approach is very beneficial
for the manufacturing company because by storing the raw material is increasing the cost and not
maintains the quality so with that not provide better quality of products.
3. Lean manufacturing
Lean manufacturing is a better approach for the manufacturing company in the
manufacturing process it eliminate the waste and increase organization profitability, Through the
uneven workload or overburdening so for that account it created for the waste. Any
manufacturing company use this approach it started with the eliminating or reducing the waste,
organization unnecessary inventory is reduced, the production is shorten, response time is very
rapid, employee autonomy is extend, all the products and it component is quality tested,
4

customer feedback is solicit and then end with the suppliers reach out through that following the
particular steps it achieve their organization objective successfully(D’Antonio, Bedolla, and
Chiabert, 2017).
4. Impact of external business environment factor that affect decision making
by leader and manager
The organization has to follow the entire external and internal environment and if any changes
occur in the mainly external environment so it also affect the organization business this factor or
changes are not controllable by the organization (Seo, and Lee, 2019). Every business are link
with the external environment and they have to follow this factor that mainly affect the manger
and leader decision because they make any decision so according to that organization internal
environment follow them so any changes occur so it disturb the whole decision taken by the
leader and manger there are various factor external business environment are as follows
1. Technology
Technology is rapidly changes in the today’s environment it also affect the business
operation or the leader and manager decision making when the changes is the technology so it
impact the leadership style and because everyone uses the technology so adopting the new
technology affect new technology and innovative technology make easier operation of manager
and leader (Roy, and Duraipandian, 2021).
2. Social and political condition
In the every economy social and political changes affect the leader and manager decision
because if the new law come so they have to change and also apply in the organization so
whatever decision made by the leader and manager they have to changes or adopt also apply for
the organization. The manager and leader follow the new policy so they have changes their
previous policy. In the social environment changes occur like customer taste and preference,
product or services so they have provide or manufacture according to their society whatever they
want
3. Competitions
In the today’s competition environment the Rio Tinto also have various competitors it is
external environment factor so if the Rio Tinto produce any product that more attract the
customer so they have to manufacture something new so if the competitors produce any new so
5

the leader and manger have to changes in their operation so by that easily compete with the
competitors
4. Economy
Economic factor is also affect the business operation of the organization also affect the leader
and manager decision making major changes in the economy like unemployment, inflation,
interest rate so it unemployment occur in the economy so the leader have to do some changes.
Changes in the interest rate so whatever the plan made by the manager so they have to do
changes in the made plan according to that if interest rate is high so their project cost is high it
also affect the company profitability
5. Management and leadership approaches that improve operational
efficiency
Organization operational efficiency is improve by using the different approaches of the
manager and leader so by that successfully meet the business objective
1. Relational leadership approach
The leader is guide the all the employee of the organization it build their relational skill
so by that more better understand their team and all of them grow together by maintaining the
good relational skills all the employee understand each other and work as a team so by that
organizational operational efficiency is increases and also organization successfully achieve their
goals (Epitropaki, Martin, and Thomas, 2017).
2. Scientific management approach
Using the scientific management approaches for the organization increase business
efficiency and achieve the objective. F.W Taylor proposed this approach in the year1856 it
believe that in the organization work should always in the discipline manner so through that
improve the flow of work also improve labour productivity and economic or organization
efficiency (Kim, 2018).
3. Participative leadership approach
The participative leadership approach play a vital role for the success of the any organization
that in the process of the organizational decision making must involve all the team member so
they feel that organization give value to them and through that they motivated and engaged
towards the organization (Odoardi, and et al., 2019). They give their best and innovative ideas to
by that organization achieve the newer heights and also compete with the competitors
6

Recommendations
 It recommend that Rio Tanto is a mining organization so if the survive for in the market
for the more longer time so they have to more and more contribute towards the
environment because if we take something from the organization so it is our duty to give
something in return the environment.
 It recommends that they should follow the different approaches of the management and
leadership so that successfully achieve the organization objective.
CONCLUSION
It can also be concluded that Rio Tanto operation management play a vital role in the
success of the company the contribution of the leader and manger helps in achieving the new
height so by that they maintain good position in the market.
REFERENCES
Books and journal
7

Barkhordari, R. and Denavi, H., 2017. Just-In-Time (JIT) Manufacturing and its Effect on the
Competence of Supply Chain and Organizational Performance in the Tile and
Ceramic Industry in Yazd Province. Specialty Journal of Knowledge
Management, 2(1). pp.8-19.
D’Antonio, G., Bedolla, J.S. and Chiabert, P., 2017. A novel methodology to integrate
manufacturing execution systems with the lean manufacturing approach. Procedia
Manufacturing, 11. pp.2243-2251.
Epitropaki, O., Martin, R. and Thomas, G., 2017. Relational leadership. The nature of
leadership.pp.109-137.
Gijo, E.V., Palod, R. and Antony, J., 2018. Lean Six Sigma approach in an Indian auto ancillary
conglomerate: a case study. Production Planning & Control, 29(9). pp.761-772.
Kim, J., 2018. School accountability and standard-based education reform: The recall of social
efficiency movement and scientific management. International Journal of Educational
Development, 60. pp.80-87.
Odoardi, C., and et al., 2019. Affective commitment, participative leadership, and employee
innovation: a multilevel investigation. Journal of Work and Organizational
Psychology, 35(2).pp.103-113.
Roy, R.K. and Duraipandian, R., 2021. Analysis of Business External Factors that Impact the
Growth of IT Entrepreneurship. Psychology and Education Journal, 58(1).pp.5526-
5532.
Seo, Y.W. and Lee, Y.H., 2019. Effects of internal and external factors on business performance
of start-ups in South Korea: The engine of new market dynamics. International
Journal of Engineering Business Management, 11, p.1847979018824231.
8