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Management operations is the way to achieve predetermined goals and objectives of organization(AbouRizk, 2010). It includes administration of business operations to develop an entity and simultaneously providing customers what they want. This process starts from ordering raw material and converting them into the finished goods. It ends when the goods are finally purchased by customers. Profit maximization is the main objective of management operations. In simple words, operation management deals with production, designing and distribution. In this report, the way in which management operations ensure immense optimization of available resources has been explained. Role of managers and leaders which they plays in an entity have been discussed as well. Further, their characteristics and significance are also defined in a detailed way. Various theories of management have been highlighted in the report along with the way in which management team can implement these theories in managerial operations of cited entity. All these concepts will be studied with reference to chosen organisation, that is, Associated British food plc . It is British food processing and retailing company. Which has its headquarter at London and its branches are situated in countries like Austria, Belgium and Germany(Ageron, Gunasekaran and Spalanzani, 2012).
Managers and leaders are those people who are responsible for activities from starting has been explained the process of purchasing raw material till end of process by selling products to customers. They are at every stage of organisation. Leaders and managers of Associated British food plc needs to identify their roles so that they can give their best to accomplish the requirement of those roles. Leaders of Associated British food plc needs to set goals and targets. They search for the opportunities and find new and efficient way to achieve goals and objectives. On the other hand, managers needs to maintain status of an organisation.
Managers make direct control over the way to achieve goals. It is easy to make differentiation between a leader and a manager(Akkerman, Farahani and Grunow, 2010). Leaders need to lead the subordinates but managers has a prime duty to complete the managerial operations to accomplish the goals and objectives. But sometimes, it becomes hard to bring out any difference because it may be possible that in an organisation, a person is playing the role of both leader and manager. Both managers of Associated British food plc needs to ensure that everything works in a planned way. Nothing goes out of the box to ensure the most effective utilization of organizational resources. Managers usually focus on tasks and the work. They prepare an effective plan to achieve the organisational objectives. Through budgeting, managers manage the constraints of budgets(Alderton. and Saieva, 2013). Managers of Associated British food plc needs to organise functions of supporting and proper utilization of organisational resources. Further, they need to have control over operations to achieve the standards required and objectives which they need to achieve. The next role which a manager plays is to make coordination in projecting of tasks for the accomplishment of organisational objectives. Manager of Associated British food plc needs to utilize effective resources in an effective manner. Management of time needs to be in an effective manner. It is because of the reason that time is the most important factor in a humans life. They both work simultaneously as making decisions is not sufficient but important thing is to implement those decisions at the right moment of time. leadership deals in focusing on long term vision and motivation of subordinates in extreme situations. Inspiring them is also the work of leaders. Further, they deal with persuasion, team work, building relationship, etc.
Managers and leaders has various roles in an entity(Ashby, Leat and Hudson-Smith, 2012).Goal of management is to maintain the standard of an entity. On the other hand target of leaders is to search for new opportunities and to make access to a new way to accomplish those goals. Associated British food plc has its outlets in many countries. So they need to give a consistent performance to satisfy the needs and requirements of its customers. In this process leaders has their own duties and responsibilities. Grocery division is a leading manufacturer of both branded and local groceries. But still it has some competitors. So the leaders has a responsibility to find the way to gain leading edge over its rivals by providing better services and products to its customers. On the other hand managers needs to make better strategies like offering complimentary beverages with food. This kind of strategies works in short term but it provides benefits in long term. Shares of rivals and their grip over the market is loosing in the current financial year. Hence this is the time where leaders can go for their aggressive decisions and managers can make efficient plans which can assist Associated British food plc to achieve its goals and objectives. It is very easy to make differentiation between a leader and a manager. But sometimes it becomes hard to bring out any difference because it may be possible that in an organisation a person is playing the role of both leader and manager
The early theme of understanding leadership was the desire to make identification of traits and behaviour that all leaders have in common(Barratt, Choi and Li, 2011). Contingency and situational theories analyse and examine the fit between leader and situation. These theories provide guidelines to achieve the organisational goals and objectives. Further, leaders and managers of organisation can implement the strategies which are based on these theories. Various theories of leadership and management that can be applied by Associated British food plc are mentioned as below:
This theory deals in making changes in accordance with the need and requirement of an entity. Management of Associated British food plc needs to identify the requirement of its organisation to make such decisions which are required for the proper conduct of business operations. Associated British food plc is a multinational food processing retailing company which is dealing in food. Hence, they need to be more sensitive towards the needs and requirements of its customers so that it can offer them accurate product which its consumers desire to have. In some situations, leaders need to use democratic leadership which means they need to include their subordinates and superiors in their leadership. Leaders need to carry out operations in a way that includes desires of everyone inside and outside the organisation. Leaders need to use their potential and expertise to make control over the organisational operations effectively and efficiently.
Leaders of Associated British food plc needs to systematically arrange the factors which help cited entity to accomplish its goals and objectives. Systematic development style will give them extra potential which will affect the organisation and its operations positively and effectively. Through SWOT analysis, leaders need to identify the strengths, weaknesses, opportunities and threats which Associated British food plc may face. Leaders of Associated British food plc needs to work on their strengths and weaknesses so that its rivals would not capture the relevant market share.
In this, consequences cannot be predicted but its outcomes are possible to occur. For example: if the leaders of Associated British food plc works efficiently then the outcomes of that hard work will definitely be there but its unpredictable Hence, it can be concluded that if leaders will concentrate on their duties then outcome of that work is definite and most probably, it will be positive for the cited entity.
There is a significant difference between leadership and management. As leadership involves leading subordinates and in management, managers are concentrated over the responsibility of things. Managers makes strategy and then they implement certain plans through which organisational goals could be achieved. Management roles includes responsibilities towards internal and external people of cited entity. Associated British food plc and its leaders and managers needs to make a detailed analysis of rivals, customers, legal factors, suppliers and internal parties of cited entity. The most significant fundamental overlap which exists between management and leadership is that a good leadership includes responsibilities of management. Often it can be seen that same persons are doing the job of both leader and manager. So it become complex to identify the difference between the role and responsibilities of leaders and managers(Heizer, Render and Munson, 2016). But as per leadership and management theories, it can be clearly identified that there are some basic key points that can be taken as difference between role of leadership and management. There are three factors which provides us the role of a leader that he can play in Associated British food plc. These theories are mentioned below :
Role of Leaders
Trait Theory : trait theory of leadership identifies personal traits. Through it leaders can be differentiated from managers. The very basic factor that makes difference between managers and leaders is,”leaders are born, they cant be made”. A person who is a leader possess the inborn leadership qualities. Whereas in case of managers its not like that managers have managerial qualities which are inbuilt in them(Gimenez, Sierra and Rodon, 2012.). Managers learns those managerial qualities from the situations which they face.
Behavioural Theory : The behavioural theory of leadership criticises the above mentioned trait theory. As per the researchers leadership can be termed as a set of behaviour. The behaviour can be classified as the reaction which a person gives when a situation comes in front of him. It can be said that leaders possesses a set of behaviour which has been developed in them while experiencing various situations during the course of actions(Galindo and Batta, 2013.). Leaders of Associated British food plc needs to develop their behaviour against various situations so that in future when the market goes down, they can make their organisation profitable in that environment also.
Function of Leaders
Human relation theory : Human relations are the most significant factors which influences operations of business. Researchers have identified that productivity and development of an entity can be increased only if the relation of management with public and other parties which influences the operations of management, is strong. Hence as per this theory it can be identified that leaders need to develop motivation among his subordinates. So that they can work much efficiently. As well as they need to develop a behaviour among the employees to deal with customers in a better and creative way(Fitzsimmons and Fitzsimmons, 2013.). So that Associated British food plc can impress them through its products and services.
Chaos Theory : In beginning chaos theory was a scientific principle. It describes the situations which cant be predicted. As environment is dynamic in nature, because of that it gets really hard to predict anything about it. So in this situation it is very crucial for an entity to have some basic steps which can be taken in case of such uninvited circumstances. Chaos theory deals in these factors. These circumstances develops an informal leader. Hence it can be concluded that chaos theory reflects the duties and responsibilities of a leader in unexpected circumstances.
There are several strength of theories which makes them significant aspect of management and leadership. But on the other hand there are also some disadvantages or weaknesses which can be considered as drawback of these theories.
Trait Theory : The most significant strength of trait theory is the clarity of its concepts. It is easily understandable(Dekker, Bloemhof and Mallidis, 2012). Hence Associated British food plc can implement this theory very easily. As a result the goals can easily be achieved. But on the other hand there is a drawback of this theory and this major drawback is it doesn't clarifies that why should traits needs to be developed and how these traits can be developed.
Behavioural Theory : There are several advantages and disadvantages of behavioural theory. As behavioural theory is scientific in nature hence it uses scientific methods of research. Which makes it reliable. But on the other hand there are certain disadvantages of this theory. It has been observed that it concentrates on the nurture side of nature(Cronin Jr and et. al., 2011). Further some ethical issues were also raised against it, because of use of animals in research.
Human relation theory : This theory deals with the human relations so it develops the behaviour of employees to deal with internal parties of cited entity further it helps in satisfaction of customers. But there are several disadvantages of this theory like it overemphasize human needs at expense of need for accomplishment of organizational task. Further it imposes dilemma without solutions.
Chaos Theory : There are certain strengths of chaos theory like, it is widely applicable in modern science and acceptable in technological era of 21st century. Research over something is very useful for organisation(Closs, Speier and Meacham, 2011). Chaos theory is not simple as it requires dynamic predictions, this is a drawback of this theory.
1.Situational Theory : situational leadership theory was actually created by, Dr. Paul Hersey a professor author situational leader and Ken Blanchard. This model explains that a leader needs to fit in every situations of the modern world. This theory argues that for getting successful a leaders needs to be very acceptable. He should observe each and every situation. And then he needs to analyse those situations. As the leaders needs to find a creative and effective way to get out of every typical issues. For that purpose situational analysis is necessary.
2.Contingency Leadership Theory : This theory states that the leader and his effectiveness is contingent in nature. That means its unpredictable in nature(Clausen and et. al., 2010). It is organizational theory which claims that there is no best way to conduct the operation of a cited entity or to lead it. A leader, who is contingent applies his own principles and react in his own way to deal with the uninvited situations.
In the cited entity, operation manager needs to manage operation to ensure the achievement of organisational goals and targets(Carter and Liane Easton, 2011). Associated British food plc and its management needs to manage its operations in accordance with the need and requirement of customers and other stakeholders which influences its business operations. Few traits of operational management is described below :
1.Realistic : In Associated British food plc, management considers its staff members valuable. This quality of Associated British food plc develops faith of employees in cited entity. In this case leaders and managers needs to be realistic and they should consider their subordinates and superiors in each and every aspect.
2.Look for efficiency : Leaders and managers assist an entity to optimize its resources. This will reduce the overall cost of an enterprise. Further optimum utilization of organizational resources ensures better quality of product and services. Managers needs to focus on production cost. To minimize this cost, they need to utilize the resources in a better way and they need to implement better techniques and technology to reduce the production and distribution cost(Brandenburg and et.al., 2011). Leaders requires to find the better way to conduct business operations so that efficiency of Associated British food plc gets increased. Associated British food plc.
3.Focuses on quality : According to this , leaders and managers needs to work on the factors which improves the quality of product and services. Because if the quality increases, the production level of Associated British food plc will also gets increased.
Understanding the importance of operation management is the important aspect, in management and operations. Operation management plays a significant role in development of an organisation. International development of business has changed the concept of operation management(Bozarth and Handfield, 2016). Department of operation management is equally important as other department of an entity. Among various importance of operation management some are mentioned below :
Some of the factors which influences and make significant impact over operational management and decision making of leaders and managers are described below :
1.Board of directors : Board members makes a huge impact over operational management. As they are secondary owners of business firm. And in operational aspect they considered as the supreme head. They are the most senior persons of entity. Hence board of directors of Associated British food plc puts an everlasting impact over operational management.
2.Staff Members : staff members needs to make their target as per the capabilities they have. They set their targets in a quantitative way because setting targets in quantitative way helps them to achieve those targets easily. This process can only be done in case proper training has been provided to them. So its the responsibility of operational management staff to give them proper training so that they can get the target which they wants to achieve(Heizer, Render and Munson, 2016). Associated British food plc have different type of foods available as their products so they need different staff for such products. And they need to get properly trained in preparing those products. So it can seen that operation management needs to cover this training aspect which influences its working.
3.Customers : customers are the other factor which influences operational management. As operational management needs to accomplish the needs and requirement of customers. To get the positive results out of business operation customer satisfaction is the most important thing.
4.Morale Ethics : This concept clarifies that business personnels needs to give importance to morale ethics. Because of the principle of sustainable development, which explains that business firms are responsible towards society(Gimenez, Sierra and Rodon, 2012). Because society has given it the license to exist so if the Associated British food plc will not consider morale ethics then its license to exist in business environment may be revoked.
Leaders and managers can make significant steps in operation management. Which helps them to improve the management and its operations. Leaders plays a vital role in operation management as it provides better way to conduct any operation. Better way can be referred as the way which allows an entity to accomplish its targets and objectives more efficiently. As mentioned in the trait theory that management depends on personal traits. Which means a leader can improve the quality of business operations through its inborn quality. Managers has a job to draft better strategies which helps them to achieve targeted share in target market(Galindo and Batta, 2013.). In case of recession, managers and leaders can make Associated British food plc survive in market through the policies they have made to survive in such adverse situations.
There are certain factors which effects business operations, its environment and wider community. These are mentioned below :
Political : Political factor is the most significant factor which effects the operations of business environment. When government frames any policies related to food industry then Associated British food plc need to follow that policy.
Economic : Economic factors influences business environment. Recession, inflation, monetary and fiscal policy are some elements of economic factors which can make immense impact over business environment.
Social : social factors are those factors which Associated British food plc needs to take care. As if it has been ignored then the license of its existence may get revoked(Fitzsimmons and Fitzsimmons, 2013.).
Technological : As customers wants updated products hence Associated British food plc needs to be updated with technology.
Environmental : Associated British food plc needs to consider environment during the production process. As causing damage to environment may lead to revocation of its existence.
Legal : Last and the most significant factor which influence management operation of Associated British food plc is legal factors as management and leaders need to consider legal policies and rules before production and distribution of its products(Dekker, Bloemhof and Mallidis, 2012).
Operation management is the area in which company members can do the proper management so that they can do qualitative work and on the basis of that they can do proper designing as well as planning in the process of production and the manufacturing of the products. The staff members of Associated British Food PLC have to do the proper changes according to the needs and wants of consumers so that they can attain the goals and objectives(Cronin Jr and et. al., 2011). The leader and manager of the business entity have to use the appropriate models as well as approaches which helps in improving the productivity and proficiency so that they can obtain the targets.
From the above mentioned facts and the concepts mentioned in theories it has been clearly concluded that leaders and managers plays a vital role in operational management. managers and leaders are different from each other. They have different role to play in a cited entity. Associated British Food PLC and its operational management needs to take care of various factors of PESTEL analysis which helps them carry there operations smoothly.
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