What Are The Approaches Of Operation Management

University: Mont Rose College

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages 14 / Words 3500
  • Paper Type: Assignment
  • Course Code: JNB517
  • Downloads: 4
Question :

Operations management is being determined as all the areas for the management which focus on controlling and designing the process of production. Kindly do answer all the learning outcomes mentioned below:

  • Explain operation management.
  • What are the approaches of operation management?
  • Explain the functions of leaders and managers.
Answer :
Organization Selected : ALDI

INTRODUCTION

In an organization, there are various types of operations that are carried out so that business will be able to meet the requirements of customers. Operations management can be determined as an area for management that is focused on controlling and designing process of production (Albrecht and Dasigi, 2016). Further, it is helpful enough to make sure that resources are used in an effective manner. This assignment is focused on Aldi which is focused on satisfying customers’ needs and wants. The report covers defining and comparing different roles and characteristics of leaders and managers. Further, it covers key approaches to operations management and the roles that leaders and managers play. Lastly, it also includes various factors within organization’s environment that can affect the decisions made by managers and leaders.

P1. Defining and comparing different roles and characteristics of leaders and managers

In order to reach out the requirements of many customers, it is important to make sure that all business functions work in an effective manner and employees put on their full efforts to support firm to grow. In this process, it is required to have support from leaders and managers so that they will direct and make employees perform effectively (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). When talking about Aldi, there are both leaders and managers who work in context with the operations that are carried out with an aim to attain set goals and objectives. There are conflict situations faced within organization and to overcome the same, leaders and managers play a vital role.

Leaders is a person who leads or commands in the group or an organization. There are certain set of skills and capabilities that are required by a leader. They encourage individuals in order to make them work effectively and efficiently.

Managers are people who administer or control company or group of staff. Certain set of roles are provided to managers and they have to work accordingly. Below given are the differences between leaders and managers:

Basis

Manager

Leader

The focus of the manager in the Aldi is to develop coordination between individuals so that tasks can be accomplished in an effective manner.

The leader focuses on attaining goals and objectives. They focus only on their team members which they are leading as well as guiding.

Personality

Personality of the leader is charismatic and they have the power to influence behavior of the employees. They are very sharp in their thoughts as well as inspire the followers to attain all desire goals and objectives.

Managers are the one who are calm in nature and their focus is on maintaining and coordinating the activities of Aldi (Deihimi, Zahed and Iravani, 2016). The personality of manager can be defined as persistent so that they can effectively manage target and attain the results.

Power

The power is given to leader of Aldi by their followers. If it have good leadership qualities, they also gets the support of followers.

Power is in the hands of managers by default because the position is only has given power to him to coordinate and manage the operations of Aldi.

Risk

They can be considered as the risk averse because in Aldi, they follow the rules and regulations of organization which is made by the firm.

The leaders are considered to be risk takers. They always choose difficult path and always takes the risk to obtain them.

Decision making process

In the decision making process, the leader sometimes take part in decisions (Jin and et.al., 2015). But in case of democratic leader, if any decision is made for the team, then he includes all the team members in the decision making process.

The managers are included in every decision of Aldi because they are one who know actual position of the organization and even situation in which the company is carrying out its operations.

In accordance with the above conducted comparison, it can be stated that both leaders and managers are highly important for business so as to make business functions in an effective manner. Contribution made by them is high and support the firm to grow in a positive direction.

P2. Role of leader and function of manager applying in different situation for Aldi

Management and leadership play an effective role for the organizations so that they will be able to earn huge productivity (Kavousi‐Fard, Niknam and Baziar 2015). Leaders and managers understand the situations that are faced at Aldi and they get involved in decision making in order to solve the issues that are being faced. There are different types of roles that are played by leaders and managers. In this context, below given are the roles played by leader:

Communicator: It is important for the leaders to possess communication skills so that they will be able to develop strong relations with employees. There are situations in which workers do not share their views to others but with effective communication, it becomes helpful to determine the issues that are being faced by them.

Thinker: With time, there are different types of changes take place in relation with preferences of service users. Leader is required to be skilled enough to determine the changes that can be implemented so that rate of sales and profitability can be raised (Keahey, Riteau and Timkovich, 2017). In this context, it requires them to have proper understanding about the competitors, their strengths and opportunities that prevail in the market.

Decision maker: Employees are faces different problems or issues due to several situations that can comes in front of management of the company. This role will too much useful for a leader for handling various types of critical situations and problems.

Further, a manager also has some important functions that can be applicable for several complicated situations. In this context, these functions are described as follows:

Planning – In this type of function, the organisation can evaluate all objectives and goals. A manager establishes such goals for the firm in order to achieve desired success. Planning demonstrates the procedure of working and it plays an essential role in different types of situations.

Organising – In this function, the manager brings all those resources which can be used for those goals and objectives that are established in planning function (Mohammadi, Soleymani and Mozafari, 2014). In resources, there are certain things that will be included like raw material, financial and personal, etc. In this context, manager needs to identify those activities that are essential.

Directing – It is the major function of a manager to conduct their objectives of the organisation. This function is need to do more than simply give orders. A manager work with his or her staff member and give proper direction for their work for reach a certain hight of success. It is start from supervising employees with motivating them through a powerful guidance.

Controlling – This approach of a manager is refers as all processes that a manager created earlier to monitor success (Parisio, Rikos and Glielmo, 2016). In this context, everyone says that “winners keep score every time” and it requires to the managers to create effective performance standards so that they can able to measure real performance and compare it.

Staffing – It is an essential need of different type of employees who have many qualifications, skills and knowledge and these are important towards accomplishing all objectives and targets. The manager fulfil his or her staff requirement by using human resource department.

P3. Leadership theories and models of approach with including system, situational and contingency leadership approach.

Leadership function of the management of Aldi company is authenticated by several theories and principles (Radnor and et.al., 2016). There are some theories that focuses on different situation, for example contemporary theories focused on the significance of situational factors, behavioural approach emphasized on finding the constant relationship in between performance of a team and behaviour of the leaders. In this context, there are some theories that explain as below :

System Leadership Approach – It is refers as set the direction of primary function and creates strong point of a transformational leader who work as high ranks with proactively and innovations. In this context, the transformational leaders work comfortable and easily with using its strength to get desired goals and objectives. It is the set of efforts that utilize in attaining all functions properly. It treats an organisation as a system that can either open or closed but most approaches treat the company as an open system. In addition to this the system is a set of distinct parts that can interact to form a complex whole (Radosavljević, Jevtić and Klimenta, 2016). The closed system is not affected by its internal and external environment but an open system may affected by its environment. In the open system approach, there are three major elements consists that are staff members, natural resources and different types of equipments or appliances.

Situational Leadership Approach – This theory is demonstrates as a person become the best leader in every situation in the organisation with choose proper course of action which is based on the situational variables. In other words it is all about effectiveness of a leadership to update his or her behaviour to the level of their team member's maturity or sophistication. It greatly depends on the maturity level of the group or an individual (Shabanpour-Haghighi, and Seifi, 2015S). It avoids the major pitfalls by recognising that there are some methods of dealing with an issue that leaders requires to be able to assess a situation.

Contingency Leadership Approach – It is purely focuses on different particular factors that are related to the work place environment that might determine a special style of leadership that is best for every situation. The effective leadership is not just about the capabilities and qualities of a leader, it is all about establish the right balance between needs and behaviours. This approach is follows by good leaders so that they would able to assess the requirements of their team members. They take many situations and work in these situations with their potential capabilities and they adjust their behaviours accordingly to the needs (zewczak 2016). It is sometimes similar to the situational theory because the leaders are work similar to that theory. In this context, major difference is, it tends to take a broader point of view that contains many contingent elements about the capabilities of a leader while the situational theory is focuses on the behaviours that the leader should apply in his or her work in the company.

P4. Major approaches to operations management and role of managers and leaders.

In the operation's management there are some essential duties for the organisation and one of its main responsibility is make sure about business operates efficiently. Management also ensures that it works accomplished with both aspects that are cover up all customer's needs and wants and use minimum amount of resources that company have in order to earn more profits. In this context, the company has several approaches to operation's management that are discusses as below :

Lean manufacturing – It is a systematic process of destruct the waste material in the production or manufacturing process. It is sees various resources that can use for any reason in the process of producing any product or service other than value creation for clients (Wakui and et.al., 2016). It seeks the wasteful of resources and reduce expenses as much as possible.

Six sigma – This approaches is majorly focuses on the quality of products and services of the organisation. This approach is established in 1987 in Motorola. In this context, the “six” refers to the control limits that are situated at the six standard deviations from normal distribution mean method which is properly applied in the business. In 1995, the Jack Welch of General Electric adopts the six sigma method. It has been includes to find out different ideas and innovations inside the organisation and it is sometimes confusing to understand. It includes many tools for example potential defect calculations, trending charts and other relative ratios.

Total quality management – It is a theory or philosophy that goal is to achieve top level of performance and maintain the quality by using resources effectively (Albrecht and Dasigi, 2016). It includes three principles that are consumer satisfaction, labour involvement and continuous improvement in employee's performance to reach at certain hight of success.

Role of leaders and managers – In the company the leaders and managers are play an essential role to achieve desired objectives and goals. They are works for enriching organisation's aim and inspire their team members and employees (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). Management and leadership is the special action to lead people in the company in order to achieve targets and goals. Managers are focus of setting and measuring the goals while leaders are provides a proper inspiration to his or her team members. In this context, role of managers and leaders are describes as follows :

  • Motivate staff members – It is the essential role of managers to motivate their team members for their work and understand their wants and need. It is also the duty of manager to use suitable medium for communication his or her employees and provide benefits.
  • Set a clear vision – It is refers as the manager is liable for creating the best vision for the company in which he or she work. In other words it defines the element of influencing employees to accept and understand the upcoming state of the company.
  • Build morale – It involves all aspects that pull employees together to work for a common objective (Deihimi, Zahed and Iravani, 2016). A manager and leader must build morale in their supportive team and appreciate them for their better work performance.
  • Guide employees – It is an important role for every managers because their staff members must understand about their work. If they don't know than, managers should provide a detailed brief for their respective tasks or functions.

P5. Importance and value of operations management in achieving business objectives.

Operation management is a procedure that refers to planning, organizing, managing controlling and supervising the production and manufacturing operation. It helps in to improve the gross productiveness of the Aldi. The operation administration of this organisation helps in the usage of resources (Jin and et.al., 2015). With the help of management, the organisation is able to make good use of its raw material, man power, money and other resources. Operation administration is actually essential for the functioning of the organisation. It is complicated procedure to manage the operations in Aldi. The resources are generally belonged to material, people, data and technology. Aldi focusing on increasing output of goods and work with minimum resources. The operation management measure the products and services of the company. The company should provide customer care service to their clients in order to satisfy by their supply. It helps in keeping the quality of commodity within their competitor. Importance of operation management are describes as follows :

  • Product selection and design – It is important for the company to select their product by the needs and wants of the clients. A false selection of the product or poor design affect the consumers.
  • Quality assurance and control – Operation administration control the quality and inspecting the standards of choice of the goods (Kavousi‐Fard, Niknam and Baziar 2015). It helps in minimizing the expenditure of producing goods and services.
  • Utilization of resources - It helps in maximising usage of machines, goods, raw material and man power and it also reducing delays for the company. It concerned with managing resources that produced by the organisation and increase the productivity.
  • Cost reduction and cost control – Operation management helps in to reduce cost of the commodity. The utility and decisions was made by operation's director which evaluate the cost of the product.
  • Serving customer - It helps in transform resources into finish goods and services and serving customer and fulfilling the clients needs and wants (Keahey, Riteau and Timkovich, 2017). Serving customer is the essential feature of the operation management. It deals with the resources and customer care service of the company.
  • Executing objectives – By the client service administration they provide the best quality service to their consumer and satisfy their need. Execution helps in management for increasing the productiveness of the company.
  • Managing the system – It manages the administration system of the company which is essential for the performance of the organisation (Mohammadi, Soleymani and Mozafari, 2014). Operation management focuses on supply chain management of the business.
  • Organizational activity – It shows the behaviour and activity of the business. The operation administration analysis the contribution of the employee and worker of the company and evaluate the economic growth of the business.
  • Employee benefits – Operation management increase the productivity of their workers. It gives better career opportunities for the employee with their accomplish task. The administration develop work skills in their jobs and increasing job satisfaction.
  • Output – It measures the outcome of different management operation in the company. Without administration there is no economic growth of the business or company (Parisio, Rikos and Glielmo, 2016). Operational procedures are helps in the future of the business and helps in customer retention. It also helps in to study the internal and external factor of the business. Operation management helps in to reach the core objectives of the organisation.

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P6 Different factors of the organisation's environment that may impact on operational management and decision making process of managers and leaders.

In the company's environment, there are so many factors that influence to the activities of operation's management and all such factors also give impact to the process of decision making of the managers and leaders. In this context, the organisational environmental factors classified in to two categories internal and external environmental factors (Radnor and et.al., 2016). In this context, the organisation is known as social entity that has a unique hierarchical structure. In this structure all necessary inputs are stay together to reach the collective objective and goal. Every organisation is often affected by its environment whether it is external or internal. These factors are demonstrates as below :

  • Organisation structure – It refers the hierarchy system of a particular organisation that having board of directors, share holders, number of employees and many more. Its nature has a significant influence over the decision making process. It can also increase the cost of production of company's outputs.
  • Labour union – It is an internal environmental factor that bargain with top level offices for salaries, benefits of labours (Radosavljević, Jevtić and Klimenta, 2016). For the smooth working of an organisation need that there should be maintain better relationship with labour union.
  • Human resource quality – The quality of staff members of a company is an essential factor and an organisational goals and objectives are depends on the capabilities, skills, commitment and attitudes of its potential workers. Employees may differ with regard to their characteristics so this factor may influence to operation's management and manager should considers it with effectively.
  • Physical and technical resources – In each company, there are numbers of resources available for accomplishing its major goals and maintain better working environment. These resources are determines by organisation's competitive strength that is an essential factor. In this context, the capabilities of research and development of a particular organisation refers as to introduce several innovations that increase the work performance of its potential employees.

Impact of organisational environment on decision making by managers and leaders – Each company has to work with its framework of environmental factors and there is a non stop interaction in between business and its environment (Shabanpour-Haghighi and Seifi, 2015). In this context, the environmental forces may affect each part and department interact with its relevant factors. All such factors are influences to the managers in their decision making process. There are some elements that describes impact of environment that are as follows :

  • Brand image – All environmental factors are influence to the brand image of an organisation because these factors give their impact to the goodwill of company. In this context, many external factors for examples policies and regulation of governments, economy of country and many more. These are directly influence to the manager of that particular company.
  • Customer loyalty – It is also influence by the environmental factors because customer's preferences always changes and in order to fulfil their needs and wants, manager should apply different strategies (Szewczak 2016). Customer's loyalty is depends on the goodwill of company because their trust is important for the company in order to earn more profits.

CONCLUSION

From the above report it can be concluded that there are various types of characteristics and roles of managers and leaders in a company's respect. It demonstrates effective functions that are important for the growth of that particular company. In this context, importance of their duties in various situations. Further, it concludes different theories and models of approach which a manager can apply in different organisational situations. It also concludes various leadership theories and approaches that are beneficial for an organisation. Furthermore, it also covered major approaches to operation's management and role of leaders and managers. Lastly, it covers up all environmental factors that may impact to the decision making process of management and upon the operations.

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