The operations management can be defined as the business practice which helps in the creation of the highest possible efficiency and effectiveness of operations in the business environment. (Reid, and Sanders, 2015) The leaders and managers play an effective role in the operations management. The organization whose management and operations have been analysed is TESCO. The TESCO is a British multinational corporation engages in the business of selling grocery and retail merchandising.
The operations management can be defined as the business practice which helps in the creation of the highest possible efficiency and effectiveness of operations in the business environment. (Reid, and Sanders, 2015) The leaders and managers play an effective role in the operations management. The organization whose management and operations have been analysed is TESCO. The TESCO is a British multinational corporation engages in the business of selling grocery and retail merchandising. The operations of the company are in around more than 12 countries around the globe and is being operated with more than 4, 50,000 employees in more than 6800 stores.
The report aims at understanding the concepts of management and leadership within an organisation. The report is divided into two parts where first part covers various approaches to understand management concepts wherein the definition and comparison of different roles and characteristics of leader and manger is explained, the analysis and difference between role of a leaders and functions of manger using range of theories has been presented. (Mahadevan, B., 2015) An examination of examples of how role of a leader and function of manager apply in various situational contexts along with the strengths and weakness of different approached in the given situation of the work environment has been explained. The second part of the assignment is based on understanding the concepts of operations wherein evaluation in relation to how managers and leaders can improve operational management efficiency has been done, explanation of key approaches to operations management and role of leaders and mangers has been made, the importance and value of operations management in the achievement of business objectives has been done, assessment of factors in the context of CSR in the business environment along with their impact has been explained.
The management can be defined as the art of doing things or getting it done through people within an organization. The leadership on the other hand can be defined as the managements’ ability in an organisation that can help in the achievement of different tasks, taking instantaneous actions and inspire people for the accomplishment of tasks efficiently and effectively. (Lee, Choi, Youn, and Chun, 2017) Hence, leadership is in relation with the action that helps the people to achieve goals in the organization.
The role of management includes the involvement of employees, leading the sub ordinates, monitoring organisational performance and that of employees as well and the handling of conflicts in the organisation. On the other hand, the role of leadership involves helping management in formulation of effective policies and plans, communication the rational to people external to the organization, extending support to employees so that they can perform effectively. It is evident for the leaders to act as a friend and guide to their employees, who can help in the resolution of the problems of the organization.
The various roles and functions played by the leader and manager at TESCO involves:
• Planning: the function of planning involves a forecast about the future in terms of mission and resources that re to be used. In Tesco, the planning is done by the managers and leaders in order to maximise the sale volume of the organisation by attracting a huge number of customers. The major responsibility of the manager and leader lies here is in the effective and efficient decision making for the organization.
• Organizing: the organising function involves the synchronization of the human activity in the organisation in such a way that the results that are required to be achieved by the organisation are achieved efficiently and effectively. TESCO considers the synchronisation of activities among various departments and offers varied number of products to the customers and tries to maintain the coordination.
• Leading: the function of leading majorly involves motivating employees which can help in the maximisation of the profit by maximising the productivity of the organisation. In TESCO, superiors spare considerable time with the subordinates and provide them with valuable guidance that helps them in motivating.
• Controlling: the controlling function involves reviewing and monitoring of the performance of the employees to assess whether the performance will lead to the achievement of organisational goal or requires some correction and the necessary actions are taken accordingly. In TESCO the performance standards are set and budgets are prepared which are used as a controlling technique in the organisation.
The various theories of leadership are:-
As per this theory it is based on the fact which causes changes in the behaviour of the individual and the society and creates a valuable and positive change that exerts the followers to follow the leader and reach towards the set goals of the organisation. (Dugan, 2017) The leaders of TESCO follow the transformational leadership to create a valuable and positive change in the organization.
It is based on the traits that are requires to possess by the leaders, although the theory fails to depict the common qualities of all the leaders. This theory is most effective in the big organisations where employees are regarded to strictly follow the provided by the leaders.
As the name suggest, the theory is contingent and changes according to the situation that is persistent at that particular time. The approach is applied as per the situation which is faced by the organization at that particular time in order to increase productivity. The theory is practiced in the TESCO environment, as it deals with varied number of products at various levels where situation is contingent and which makes theory of leadership most effective.
the classic management theory is based on the fact that workers of the organisations only have the physical and economic needs and do not take into account any social needs such as job satisfaction. The focus is on the centralized leadership, profit maximisation and decision making.
The chaos theory of management states there may be a chaos or disturbance in the organisation due to the economic slowdown and change in the needs of the public. The theory is best applicable to the organization where management keeps their employees ready to face any for of situation without getting demotivated.
The Management by objective is a model which aims at performance improvement by clearly defining the goals of the organisation that have been agreed by the management and employees of the organisation.
•Stable situation:the stable situation depicts that the organisation is not prone to any change that may hamper the organization purpose in the maintenance of stability of the results. For instance, no change arises in the market in terms of inflation and change in demand of the products.
• Slow to moderate changing situation: in this situation the change that occurs take place at slow pace and the factors that are impacted also changes moderately as per the organizational purpose. For instance, if the inflation rises, the changing situation is moderate which has emphasis on the results.
• Fast changing situation: In this situation the organisation is exposed to the fast-changing conditions due to the impact of the market environment. For instance, the rapid changes in the stock market that are prone to the fluctuations according to the indices and theory impact a lot of investors.
Also, various external and internal organisational changes arise in the organisation. The external changes in the organisation includes factors such as government regulations, taxation policy, competitors and changing economic conditions. The internal factors include the change in the management, change in the financial position of the business and various changes in the strategies.
The role of the leader and manger in varied situation are as follows:
The role and function of manager includes:
• Planning: in the organisational analysis in consideration of changing situation, planning techniques such as budget allocation, availability of workforce is used for effective decision making.
• Organizing: the manager focuses on the coordination of activities among various departments in order to maintain stable results in changing conditions.
• Leading: In TESCO, managers spare considerable time with the subordinates that helps them in motivating and achieving results in the changing situation.
• Controlling: In TESCO the performance standards are set by managers and policies are prepared which are used as a controlling technique in the organisation that helps in the monitoring and effective utilisation of resources.
Role and functions of leaders involves:
• Directive style: in this style leaders provides direction to the employees or the workforce of the organisation who are otherwise not equipped with the specialised skills to accomplish the set tasks. The leaders directly give instructions which are required to be followed by leaders.
• Supportive style: This style involves the leadership traits that is focused on reducing the stress among the employees and increasing their productivity at the work place. The emphasis on the growth of the organisation and to achieve the desired results of the organisation.
• Participative style: this style of leadership involves the participation at all the level for the maximisation of strength of the organisation that can help in achieving the desired objectives.
•Achievement oriented style: in this style, the results of the organization are evaluated according to the high targets set by the performance actions for the maintenance of results as per the set standards which helps in the accomplishment of set targets.
Tesco mostly uses the participative style of leadership in the organisation in the changing situations that prevails which helps the organisation in the attainment of maximum strength and productivity. For instance, while the induction of new team members, performance management and change management the use of participative style of leadership has proven to be most beneficial.
The different models of theories and approaches such as situation leadership theory, system theory and contingency theory has been assessed here along with their strengths and weaknesses. (Holten, and Brenner, 2015).
The situation leadership can be defined as the type of leadership where the style is dependent upon the skills and capabilities of the employees for whom the leaders are required to attain the form or technique that can influence them in the completion of tasks. (Thompson, and Glasø, 2015) The environment of TESCO is varied due to the various products offering in varied countries. The situational leadership style let the leaders change according to the given situation.The strengths and weakness involve:
In this style the workings of the employees are controlled by the leaders and they are made work according to the needs of the company in order to achieve the desired goals. (Ford,and Harding 2018).
The contingency theory of leadership explains that the optimal course of action is dependent upon the internal and external situation of the company. (Meuser, Gardner, W.L., Dinh, J.E., Hu, Liden, and Lord, 2016)Hence the leader used either the task-oriented approach or the relationship-oriented approach. The task-oriented approach is basically focused on the task completion without any other considerations. And the relationship-oriented gives focus on the maintenance of relation as well.
The leaders and mangers can increase operational efficiencies in the organization by following steps:
The leaders should empower staff in their operations which can help in increasing the productivity of the organisation. The flexibility of working hours and location not only help in the achievement of productivity but also helps in the increased quality of products. (Chokheli, E., 2015) Hence, leaders and managers must focus on the employee empowerment which can help in achieving the business objectives of product and quality maximization.
The clearance of the ineffective and unproductive elements from the production process can help in the maximisation of product development. The managers and leaders must focus on the reducing the labour redundancies in order to achieve the organisational goals.
The control and coordination in the work environment helps in the improvement of collaborations thereby improving team work performances and creating a healthy environment for work. Hence, managers and leaders must focus on the improvement of collaboration for the achievement of operational efficiency within the organisation.
The incentive programmes that involves the appraisal of employees in the form of increments, promotions act as motivating factor for the employees which induce them to work hard for the achievement of operational efficiency. Hence, managers and leaders should create various incentive programmes time to time.
To understand the needs of buyer and customer it is evident to create a communication with the customer. The proper communication with customer helps in the increasing of efficiency in the operations management. Hence, the managers and leaders must establish a channel for communicating with customers.
The key approaches to the operations management are:
• Just in time management
• Six Sigma
• Lean manufacturing
the JIT strategy is based on the fact of increasing efficiency and decreasing waste by receiving the goods when they are needed which helps in the reduction of the inventory cost.
The approach can be defined as an approach which is data driven and discipline and it acts as a methodology for the elimination of defects in any process ranging from the manufacturing to transaction or from goods to services across different organisation. The Six sigma approach is most relevant for the TESCO in the operations management as it deals in the retail sectors and has various transactional operations.
It is defined as simple and systematic method that helps in the elimination of wastages within the manufacturing system. The implementation of lean manufacturing in the production can help in the operational management of the organisation by improving the quality of product, increasing production efficiency and eliminating the redundancies of the process.
The operations management involves monitoring, and designing the process of the production and redesigning the operation of the business in relation to the production of goods and services. (Al Saifi,2015)The operations management is an important part of the business operations as it creates value for an organization. The functions of operations management include:
Control and distribution system: the function of operation management helps in the controlling of the production process and ensures proper distribution of products which helps in the fulfilment of the objectives of the organisation. Transformation of raw material into finished goods: the operations function helps in the analysing the demand of the products and services then raw material are installed in the process for the conversion into the finished goods. Thus, operations management helps in the efficient utilisation of resources of the company.
Process designing: the operations management helps in the reduction of the redundant process thereby increasing the efficiency and effectiveness of the process.
Scheduling: the scheduling function of the operation management helps in the proper scheduling and distribution of the task in accordance to the set skills of employees, resources and time available for the completion of task.
The environment of the business is affected by a number of factors which are external to the environment and impacts the operations and decision making of the business. (Bosch-Badia, M.T., Montllor-Serrats, and Tarrazon-Rodon, 2017) Hence it is evident for the organisation to assess these factors so that they can adopt strategies and policies to reduce their impacts. The various factors are political, environmental, social, technological, economical and legal.
The CSR can be defined as the business objective which helps in the contribution of the sustainable development by delivering economic, social and environmental benefit to the stakeholders. The management and leadership that persist in the organisation plays a vital role in the CSR. It is evident to ensure by the organisation that natural resources used by them are not excess in demand to the production requirements and no harm is caused to the environment in the production process due to pollution or any other factors. (Taştan, and Davoudi, 2017)
Culture: the culture can be defined as the ideas, beliefs and customs of the people at a particular place. (Al Saifi, S.A., 2015) It plays an important role in operations management as during the operation process the culture of the workforce are taken into account and the decisions are taken accordingly. (Elsmore, P., 2017)
Value: the value can be defined as the standards or one’s behaviour. The value is considered as the most important in the business organisation as the products and services are developed according the customer values. (Avota, McFadzean, and Peiseniece, 2015)
Ethics: in order to follow the CSR an organisation must practice ethics to ensure that the activities do not harm the stakeholders of the business and the environment. (Lindebaum, Geddes and Gabriel 2017) Sustainability: the concept of sustainability means meeting the demands of the present generation without compromising the future needs of the following generations. (Gao, Y., 2017) The leaders and managers should ensure that strategies that are applied to the organization are sustainable in nature and should not harm the social and cultural ethics. (Dion,2017)
The impact of these factors on the business environment includes:
the CSR policy helps in the fulfilment of the requirement of the stakeholders such as customers by providing them with right product at right time, employees by giving them proper work environment, suppliers and creditors needs are fulfilled by giving their due payments and orders.
the expectation of government in regard to receiving taxes at right time, proper legislations being followed fulfils the government expectation.
the expectations in relation to not exploiting the natural resources, not polluting the environment.
the expectation of the community needs is fulfilled by CSR activities by receiving all kinds of community development schemes and programmes for environment.
After preparation of the report, it is inferred that management functions and the leadership functions are important in the operations management. The functions of operations management help in the achievement of the organisational goals effectively and efficiently.
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