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In today’s day and age, the demand of the well-grounded leadership and the management is very high. Leadership and management are two synonymous terms, but they are different. Leadership is considered to be the essential part of the effective management. In this report, the leadership and management role have been contrasted in reference to the operations and functionality of an enterprise. The bond between the leadership and management has been elaborated in context of a contemporary business scenario. In addition, the key approaches and the role of the leader and the managers in running different tasks and operations is talked about. Apart from this, the value and significance of the organisation’s operation is elaborated in context of “Aldi”, an international retailer. The factors that affect the business environment have been mentioned and their analysis is done. Moreover, how Aldi uses the lean approach in operating its business tasks have been demonstrated in this report.
It is significant that for survival of the business for a long period of the time and for managing the workforce of the organisation, leaders and the managers have to adopt effective approaches. ALDI’sbusiness operations is based on lean production that aims to reduce the quantity of resources used in serving the customers. In addition to this, these approaches control and regulate the processes of production and to improve the operations and the functions of the organisation These approaches are as follows:
Total Quality Management: For continuous growth and development of the organisation, it is essential that there is continuous development in the goods and services of the organisation. As per this approach, such development in the goods and services are made by inviting or taking feedbacks from the customers (Hitomi, 2017). There are various aspects to this approach as the scope of this approach is wide and it focuses on the customers, involvement of the employee, process centered, Decision making which is based on the facts, establishing effective communication within the organisation as well as the outside the organisation. Due to continuous improvement in the goods and services of the organisation, it attracts more and more customers and helps in generating more profits. There are various other approaches within ensure the development in quality and its management and which are:
Just-in-Time Inventory: It is necessary for managing and organisation the production process that adequate resources are available for the production of the goods and services. It can also be said that it makes sure that management of inventory is necessary (Imran, et., al., 2018). This approach is adopted so that the order placed of the raw material is consistent with the production schedule. This helps the organisation in accomplishing the production cost, decreasing the wastage of resources, etc. It also includes that proper coordination is made between the production manager and the supplier of the raw material.
The concept of continuous improvement (Kaizen): In accordance with this approach, it is stated that at first instance small accomplishments are made and after that there is continuous increase in accomplishing the goals of the organisation (Imai, 2012). This approach focuses on the improvement in the efficiency and the quality of the products and the services. The concept of this approach is based on the general theories i.e. continuous improvement is required for continuous growth of the business.
Roles played by the Leaders
There are various roles which are played by the leaders which are as follows:
Roles played by the Managers
There various roles which are played by the managers which are as follows:
ALDI’s operation management is based on the principles of lean thinking. The benefits of which are very large. It provides an edge over its competitor by reducing the cost of production, thereby helping the firm to keep the prices of its product low up to 30%. It combines and transforms the different resources which are used in the operations of the ALDI. It regulates the services in a controlled manner according to the policies of the ALDI. The function of operation management is concerned with the transformation of inputs into required outputs that have the certain level of quality.
Importance of operations management
Lean thinking plays a crucial role in the operation management and it is necessary as it provides the effective and efficient services and products and also affects the profitability of ALDI. The ALDIutilize the efficient use of resources to create the better quality of services and products and also to fulfill the needs and demands of the market. It can also be observed that the function of product and service development helps to maintain the quality, speed, cost, flexibility of the services and products. It is the responsibility of the operation management to maintain the better relations that help to enhance the use of the proper raw material. The approach of customer relation management provides the standard service to their clients to fulfill their demands and needs (Jaques, 2017).
Since ALDI has inculcated the principles of lean thinking in the working of every department of it business, operational management reflects the similar objectives that of lean thinking. Those objectives are discussed below:
Quality: It can be defined as the standards according to the expectation of customers or the things that help to meet the demand of the clients. ALDI should provide the better quality of goods and services that can be suitable for their purpose. It also helps to decrease the cost and also increase their dependability in relation to the operation management. ALDI can adopt the approach the total quality management for the continuous improvement of the operations that are associated with this organization. Six sigma approaches is that method in which quality can be sustained in the operation in relation to the ALDI.
Speed: It is the time during which the ALDI deliver their services according to the needs and wants of the customers. The faster they supply their services there are more customers who likely to pay for that services and products. It is the responsibility of management to implement the strategies s in a better way so that they can attain their goals (Hugos, 2018).
Supply chain management: It is the organizational objective of ALDI that the services and products are supplied in an effective manner as there is the demand for the products of ALDI. For the effective supply chain management, the manager has to analyze the trends of the market and determine the supply and demand and action plan has to be implemented according to that trend.
Satisfying customer: The main objective of ALDI is to satisfy the needs of the customer. If the customers are satisfied with the services and products of the customer then the organization can easily achieve the goals and targets. Customer can satisfy in that case, when also provides the better quality of services according to their needs and preferences.
Flexibility: It can be stated as the ability to change according to the situation. It is necessary for the customer to adapt according to the situation. The ALDI can be said to flexible when they use the new tools or techniques, they can implement their process according to that techniques.
Dependability: It means the quality that can be relied on or counted according to the needs of organization. It is the consistency and stability of the performance. It is the situation in which the customers can receive the services and goods on time according to their need and preferences.
Managers and leaders must first understand the supply chain. Once they are familiar with the supply chain of their organisation, they can apply different strategies to improve efficiency. Lean thinking is one of such tool for them. Talking about ALDI, the principles of lean production were planned and built into every task or operation ALDI does.Leaders and managers of this organization used to make the strategies and implement the strategies of operation management in that way by which enhancement in the revenues of this organization can be accomplished. The business objective of sustainability and surviving in the competitive world can be achieved by this organization with the help of implementation of the approaches of operation management. Continuous improvement can be obtained with the help of Total Quality Management and Six Sigma approach this organization. This is impacting positively on the growth and development of this organization. The innovation can be accomplished in this organisation by the continuous improvement approach by which the research and development of this department used to improve and innovate the product and services of this organisation. This helps in accomplishing the goal of increasing the sales for this organization (Laureani and Antony, 2018).
The factors of business environment impact on the decisions taken by the managers and operational management of the ALDI. Organisation has internal and external environment the factors of external environmentincludes certain things
Some other external factors of environment thateffect the operational management and decision-making process of the leaders and managers are:
Internal factors which impact decision making and operational management are:
Managers and leaders of the ALDI have detailed knowledge about all factors because their decision affects the functions and operations of activity in future growth and success.
The recognized factors of internal and external environment of the ALDI business affects at large scale in the success and failure of the company. It is the essential requirement of the company, for its functions and operations, decision-making power etc. The economic policy, financial position, inflation rates, etc affects the decision of managers related to any particular decision making. The culture and social value of the organization internally or externally affect the company and its future growth. The much focus is given towards the demands and preferences of customers, market competitors, and ethical values of society (Khan. and Quaddus, 2015).
The operation management is one of the most significant functions that assists in achieving the organisational goals.ALDI’s lean thinking approach helps it in providing the efficiency in each and every aspect of business.It assists the organisation in managing the resources that are limited. This not only helps in improvising the production processes, but it is also crucial for the survival of the organisation. The production of goods is necessary to meet the demands of the consumers. Operation management covers the planning, organising, leading and staffing or controlling processes that are why every manager must learn how to master operation management, especially how to include the lean thinking principles in their functioning. Operation management along with lean thinking approach is crucial for product and service management, supply chain management, inventory management, forecasting the future trends and capacity planning (Bryman and Bell, 2015).
There are two categories of business environment, namely internal and external environment. Internal factors include human resource, organisational culture, physical assets, funds, etc. External factors comprise climate, economy, and political factors. These factors affect the business both positively and negatively. Organisation must consider this factor while making strategies in order to avoid issues that may affect the business growth in the long run.
In this report the role of the managers and leaders had been evaluated and their relationship was discussed briefly. In addition to this, different models and leadership theories had been mentioned in this report. Moving further in the report, the role of manager in operation process improvement was elaborated and how a manager applies the three process improvement model in different situation had been stated clearly in the coursework. Management and leadership go hand in hand, and how they are interrelated to each other and what is their importance had been elaborated in this report. In the end, the factors affecting the business environment were elucidated and their analysis was carried out in the course of this report writing.
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