Operation management refers as an area that is liable for overall management and design of products and various services. The main target of this management is to fulfil all strategic goals of the company (Albrecht and Dasigi, 2016). In this context, there is a company Asda, which is situated at Leeds, West Yorkshire, England. It is a retail company and includes many groceries; financial services
In this report, roles and responsibilities of leaders and managers are describes and further, it will refer various approaches of operation management that are used in the store department of this company. Lastly, it covers internal and external factors that will influence business activities and operations.
a) Roles and characteristics of the managers as well as leaders and the differences and similarities between them.
In every company, there are many managers for various departments and also several leaders who handle their team to manage all activities and tasks in accordance to achieve goals and targets of that company (Ando and et.al., 2018). In this context, the manager performs various tasks for achieving the departmental success. The leaders perform their responsibilities in order to cover up various complicated situations.
In addition to this context, the meaning and roles of leaders and managers are as follows:
Managers – It is a person, who conducts various task and activities. He or she also makes plans and strategies to fulfil the organisational goals and targets. The manager is maintained control and manage all activities of that particular department and gives different tasks to employees so that they achieve the aim of that department. Every sector of Asda has many managers and they make new plan and strategies to maintain the control over on the organisation.
Leaders – Leader is a special person who has a team with many members and they work together for achieving the organisational goals and objectives. The entire team members have sufficient skills and by using this, an organisation achieves desired targets and goals (Anvari-Moghaddam and et.al., 2016). The leader is a person who manages staff member and employees in order to achieve several competitive advantages. The leader has communication and leadership skills for solving conflicts and issues which can be raise in his or her team.
Managers are depended on the organisational structure and they are delegates about their work
Leaders provides direction to their team members
Manager makes a plan
The leader is able to develop the vision
Managers are followed the company's rules and policies
Leaders are follow his or her own instinct
They deal with technical dimension
In this case, they deal with people's aspect in any organisation
They evaluate many people by their personal information and performance
They evaluate an individual by his potential and work efficiency.
Management is a reactive process
In this context, leadership is proactive
They have management skills
They have leadership skills
b) Functions of the managers according to the Fayol and describing the performance of these functions.
In every company, there are various managers for every department who manage their work according to their staff members. Many organisations follow their own principles and their manager works according to their skills and abilities (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014).
In this context, there is a person named is Henri Fayol who was born in 1841 in Istanbul and he was an engineer and worked in a large mining organisation at France then he was eventually become the director of that company. There were more than 1000 people who worked under him. He noticed that there may be some departments in the organization that are commercial, technical, financial, security, operational and managerial. Fayol described 6 major functions of management that are Forecasting, Planning, Organizing, Commanding, Coordinating, Controlling but various business standards and scientists applied only five functions. These five main functions describes as follows :
- Planning –It is very important task to accomplish by every manager in his or her related department. It is very complicated and difficult work to manage all departmental activities (Deihimi, Zahed and Iravani, 2016). Planning means all things will be conducted in the future, is decided in present and makes whole procedure about accomplishment of it. Planning is a special process which is connected with respect to time and implementation with effectively and efficiently.
- Organising –It is the important task for conducting and managing all employees with respect to work and this will useful for every manager for their management. This is the function complete well, if it is well organised. It means requirement of proper staff, capital employed and raw materials for production of various outputs. In any organisational structure, there are a good division of various tasks and functions that are crucial.
- Directing –It is a special task, which is conduct by the manager for give various commands to their employees and give inspiration to his or her staff members so that they all work properly in the prescribed manner in order to achieve the desired targets and goals. These orders are given for clear working instructions and it will helpful for employees so that they all know what exactly they do.
- Coordinating –This kind of activity is done by the manager when all tasks are harmonized and by using this the company work its business activities better than others. In this context, positive influence of staff members is important (Jin and et.al., 2015). It is the aim of discipline and stimulating motivation within the team and this is used in the success of the particular company.
- Controlling –This task maintain control over on the team members in the right way and all the employees done their work according to the manager's order. The manager uses this technique for maintaining control over staff members and his or her team worker.
c) Some different theories of leadership such as situational, contingency and system leadership approach that are use in Asda company.
Illustration 2: leadership approaches
(source – TBAE 2018)
Leader is a special person of a company; he conducts various tasks and he leads his team. The best leader always inspires his team members and him or she accomplishes all work with the help of all employees (Kavousiâ€Fard, Niknam and Baziar 2015).
The various functions of leaders of Asda Company are divided into different categories and he or she performs such functions in the proper way. The leadership is a special post in the company and it is leads and control the team and his or her group. In accordance with this, there are many authors and scientist who provides various approaches and theories which are too much helpful in their work. The management team of Asda and their leaders follow such theories are as follows :
- Situational leadership theory –In this type of theory, the leaders can control every complicated situation and they are able to work in different situations and their work also good. This theory gives by the Ken Blanchard and Paul Hershey in 1969 with their skills and abilities. This theory states different type of conditions and situations, the leaders can use this as the business tool for solving various conflicts and issues.
- Contingency leadership theory –To become a successful leader, he or she can use this theory in his or her work to get best results. This is a unique technique for solving various types of problems that can generate in the organisational environment (Keahey Riteau and Timkovich, 2017). This is useful for every leaders and for their organisation. The management of the Asda company uses it for their leaders and the leaders are also work properly and their team members are able to achieve the competitive advantages.
- System leadership theory – This is a different theory for applying in various situation and it is a systematic approach. The company Asda and its leaders use this as to maintain the control the whole workings of his or her team. This will help in communication process and by using this a leader can understand the future targets and aims. For this reason he would able to achieving them in the given time frame (Luo and et.al., 2017). The system leadership approach also use for improving the staff abilities and their skills in accordance to reach at certain height of success with effectively and efficiently.
1. Strategies and approaches of operations management use in the Asda company.
In the manufacturing company, the production process is known as controlling and design various products and services in the operational management. It is a system of converting input into output by using various process and equipments (Albrecht and Dasigi, 2016). In the operational management of a company, many approaches and plan makes to fulfil the organisational goals and targets. These strategies applied for cost minimization and increase the revenue. In any production system, raw material and various inputs are use with labour power. These all things are manufactures and modified in the plant and machinery and output receive as finish goods. This will help in maintaining the environment of the company and increase the production process in order to achieve desired targets and objectives of the particular firm. In this context, some approaches of operations management which are used is the Asda company as under :
Six sigma approaches – It is a special technique, this is use for make useful frame work of the project and if the management team, managers may approved this as a tool of business then this will make a strategy (Ando and et.al., 2018). This technique can use in the management of operations and the manager can improve his or her work with effectively. It will measure according to its standard and utilize in various sector of business. The management of Asda has to capability to use this technique for improvement in various function and they get success to cover up the business goals. It is a special technique to use for improvement in various quality products and this is also used in the eliminating process of defects and errors. It will help in time saving and reducing the production cost.
Lean production approach – This approach is use for minimization of wastage of resources. This technique use in various department in the Asda company (Anvari-Moghaddam and et.al., 2016). The management of this organisation use this by their specialist and skilled managers and they get best results in achievement of their targets. It is intended to have first the enterprise and after that its stakeholders. Lean approach has been earlier use in to the manufacturing department but in present days this is also used for various elements like Lean Engineering, Lean office and Lean Developments.
Further, the various approaches of operations management in product base industry are like Just in Time, Kanban Kaizen and many more for assessing its several processes in order to make the best products. In the service industry, the Agile development approach is use for ensuring the better services (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014).
2. Role of store manager in operation management in the Asda.
In the Asda company, there are many managers who works as store manager and manage various activities, tasks in operation management. They work according to their schedule and plan so that they get desired achievement. The store manager kept daily plan and he or she divided it into heir team members and employees. Each departmental manager should follow the plan and make different strategies for achieving their desired targets (Deihimi, Zahed and Iravani, 2016). The manager maintains the environment of store department and all employee who works under them work properly. He or she makes sure about the customer's wants, needs, issues and complaints to maintain the brand image and goodwill of the organisation. Manager finds the needs of their staff member and their requirements. In the major work of him or her, give inspiration and forecasting about the future trends and customer preferences. This will help to the arranging new products and increase the quality of services. The innovative idea can use to fulfilment of this requirement. The store manager work for increase the production of various products and modification in sales figure of the company. By using many techniques, the manager would able to achieve certain growth in the target market. He or she attracts more customers by new products and developing ideas. In the Asda company, the store manager have many duties and responsibilities within the organisation and his or her role is describes as follows :
- Management of different equipments – It is an essential liability of the store manager that he or she should manage all assets and appliances which are uses in the production process. This is a basic role of the manager and he would liable for arranging all equipments in the right way.
- Making new market strategies – In every company, the store manager makes new plans and strategies to achieve competitive advantages in the target market.
- Cost optimization – It is an essential for earning more profits and this task should conduct by every manager (Jin and et.al., 2015). It is a basic need of every organisation that makes more revenue and this is possible only by reducing the cost.
- Recruiting and handling – This is also an additional work of the manager because in some situation there are needs of manpower or labour.
- Maintain the sales environment – For increasing sales, the manager makes various plans and strategies for achievement of desired turnover and success.
- Inventory holding – In the production department, this is an essential task for handle types of bulk stock and also manage the transportation service.
- Manage the budget – In the company, every department get certain amount of fund for utilize in many expenses (Kavousiâ€Fard, Niknam and Baziar, 2015). It is the duty of the store manager that he or she manages their budget according to the fund.
3. Merits and importance of operation management in the Asda company.
Operations management is refers as the whole administration of the organisational practice and it creates the highest level of capacity possible in the firm. This department is purely focuses on the production of various services and products in the prescribed manner. In any organisation, there are many departments and the management of operations helps in each and every department to attend the several business activities. The management team is capable for manage all activities related to business and they also liable for managing the operations related functions (Keahey Riteau and Timkovich, 2017). In the operation's management these things are includes like designing, overseeing, controlling the whole procedure of redesigning and production of the particular products and service. The Asda company has many activities related to the operating various functions and its management team accomplished it with effectively and efficiently. In this company, there are many departments and major importance of the operation's management in such, as follows :
- In accounting department – The operations activities is too much useful in this department because by using various methods and standards in this accounting department, it operates its tasks smoothly and working environment also maintain (Luo and et.al., 2017). In addition to this context, the payroll is easygoing to handle and also the predictable cost can measure. This department also maintain its proper bills and payment system so that the employees can work in better environmental situation.
- In human resource department –This department is capable to make new plans and predictions about the requirements of their staff member and employees with the help of operation management. The manager of this department can use several methods for training and development of new entrants and trainees. By using this management, it will become easy to fill the vacant post and its cost is also decreased level (Mohammadi, Soleymani and Mozafari, 2014). To develop employees capabilities and skills, it is the best management which should be in every organisation in order to achieve desired goals and targets.
- In legal formalities– For every company, it should necessary to fulfil all requirements of the legal structure of that particular country in which the company is situated. For all activities of legal division, the operation's management is too much necessary for fulfilment. Rules and regulations made by the government should be fulfil by each company in order to achieve competitive advantages in their target market.
- In marketing department –This department is also got success, if the all operations related activities are success. In the company, this is only a department which is maximum use of the operations. It is also a requirement in it because in marketing, there are various activities which needs the better operations.
- In finance division – Operations is play an essential role in collecting the funds and capital requirement of the company. The management team is prepare the best model for collecting its capital needs from various financial institute and further, the financial department of the company is capable to manage all funds according to budget and expenses (Radnor and et.al., 2016). So for this reason, the management of all operations are required for this company Asda and it will fulfil all business activities in order to achieve desired aims and targets.
4. Assessment of external factors that can effects to the Asda company's operation management.
In every organisation, the management of all operation's related activities are essential for its growth and it will become successful. There are many elements and factors that can affect this management at big level. So for this reason it is necessary to assess all these factors in the right manner so that the management of the company would able to achieve the target (RadosavljeviÄ‡, JevtiÄ‡ and Klimenta, 2016). In the Asda company, the management use several elements to identifying such factors and then they solve for improvement in their operation management. This organisation gets deep influence from outsiders and this is a great impact on its business activities. Every manager of this company have many methods to solving the problems which are generates from outsiders. For this company there are several factors that can effect the internal environment of the company. So for this reason the organisation should eliminate all these factors and ensure about its growth. In this industry, there are so many elements related to its external environments and this will affect the sales and reduce the organisational productivity. This will also affect to the employee's morale and due to this the staff members influenced in their work. The strength of this company also reduce and many points of weaknesses can raise and this situation is become complicated for managers of various departments. Major external factors that can influence the operation's management of Asda group are discussed below :
- Market Situation – In such criteria, the business get affected from various market conflicts and condition and due to the increasing and decreasing trend, the demand and supply of various products and services of the organisation. In the target market, the company sell its outputs and earn profits (Ribeiro and de Sousa Jabbour, 2017). If there are any change in the market condition, then it will a huge impact on the company's selling process.
- Suppliers– These are such persons or entity who sale their product to the company and it is received as the raw material or for resale purpose. The purchase department of this organisation is makes many policies regards to the material purchasing from creditors or suppliers and they affect to the organisation (Szewczak, 2016). So for this reason the management should consider this as major element for the company.
- Customers– Customers are those persons who purchase the company's products and use its various services for their livelihood so this is also an external factor that should consider by the Asda's management team and rectify. The company can change in its policy and make new designs for attract new customers.
- Economic Condition– It is also a considerable point for every company that it should compile those updates and rules for their products and various services (Albrecht and Dasigi, 2016). There are various changes in every economy and the organisation get influenced by these changes.
- Politics– It is a huge element in every nation in their political environment and if the company is situated in that economy then it should suggest to preparation according to such policies and laws.
- Environment –In this context, the environmental factor can affect to the operation's management and there is a special element is corporate social responsibilities that would compile in each company's management.
5. Impacts of these factors on the decision making process of the store manager of Asda company.
In every company, there are a big influence by the external factors on this business activities and the management has challenge to solve it (Ando and et.al., 2018). The company has many techniques to rectify it and it is a pattern which is based on the generalizations and experience. It can lead the memory errors, faulty logics and several problems. The management team of the store department makes decisions and innovative for various products and services. These new ideas help in the production process. Various sectors that get influence by external environment are discussed as follows :
- Goodwill – The external factor have a huge impact on the brand image as well as the goodwill of the organisation. The image of company can change by its external environment factors (Anvari-Moghaddam and et.al., 2016). These factors may influence the company's policies that are customer policy, sales policy, production policy and many more. The store manager makes many plans and strategy to resolve it and make best brand in the particular industry.
- Resources of organisation – Every organisation have their own resources that are required for accomplishment of production and trading activities and such resources also influence. So for this reason the store manage should manage all these resources in the right way.
- Product price –Each product and service have its fix price and the external factor also influence in the process of price decision by the store manager.
Management of various operation is an essential element for every company. The management team of each organisation should consider this as the key point of success. In any company, there are many managers and leaders for managing and maintaining control over on that particular company. In this context, Asda company follow many operational activities in its business and it follows many situational strategies to eliminating conflicts and issues. In this report, major functions and responsibilities of leaders and managers are described. Furthermore, importance of operation management in this company is discussed in the right way in order to achieve competitive advantages.
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Books and Journals
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