Unit 4 Leaders and Managers in Organisational Operations
Get free samples written by our Top-Notch subject experts for taking assignment help services.
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.
P4). Explain the key approaches to operations management and the role that leaders and managers play in the running of the organisation’s operations. Consider operations in terms of resources and processes.
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:
- Six Sigma Approach: This approach is defined as a quality programmes which helps and contributes towards the cutting the production costs, building better leaders or managers, enhancing the experience of the customers, etc. It is also said that this focuses on the improving the quality and the quantity of the output which is produced or made by the organisation. In this approach, the managers make use of trending ratios, charts and other calculations which helps in enhancing the quality of the output. At the same time, this approach is used for making an estimation of the defects in the opportunities.
- Lean Manufacturing: It is well known that in process of production, there are various waste materials which are thrown out. This approach focuses on the reduction or elimination of the waste material which is created or developed due to uneven or excessive workload. The management of the organisation makes adoption of this approach to decrease the cost of production by eliminating the wastes of the raw material used for developing final products or goods (Naveen, et. al., 2018). In accordance with this theory, there is scarcity of resources and it is essential that such available resources are utilised properly and due to reduction in the expenses of the production, such funds will be utilised for creating value for the customers.
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:
- One of the most significant roles of the leader is to set “lean production approach use” as one of the many organisational goal.
- Leaders direct the efforts of the workforce of the organisation towards the organisational goals.
- Another role played by the leaders is to motivate or encourage the workforce of the organisation.
- It has also been seen that the leaders are responsible for building the morale of the employees which helps in improving their performance.
- Another role played by the leaders is he/she helps in setting up clear vision for the workforce in performing the task properly.
Roles played by the Managers
There various roles which are played by the managers which are as follows:
- Managers are responsible for managing the resources including the human resources of the organisation.
- Managers can manage their limited resources (workforce, money, technology, and time) by inculcating the principles of lean production in every organisational task.
- It is the manager who communicates the goals or aims set up by the management of the organisation.
- Manager is also responsible for dealing with the issues or the grievances of the workforce so provide timely redressal of such issues.
- Manager is also responsible for monitoring the plans and its implementation.
P5 Explain the importance and value of operations management in achieving business objectives. In doing so, show how ALDI has achieved its stated objectives in its approach to operational management. You should state what these objectives are.
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.
M3 Evaluate how leaders and managers can improve efficiencies of operational management to successfully meet business objectives. You should apply this to ALDI drawing examples from it and another organization of your choice.
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).
P6.Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers. Stakeholder needs and other internal or external factors may be considered. Give examples using ALDI and another organisation.
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
- Economic dimension:Lean production enables ALDI to keep its price lower than the competitors. All this happened because the business is operating at peak efficiency. It reduces the cost of production and minimises the waste generation.It is the complete status of the economic position of the ALDI in which company operates and functioned. The significant factors arse interest rates, inflation, unemployment etc. These factors affect the products demand at large at the time of inflation so companyhas to pay a large amount of resources.
- Technological dimension:The technology of theALDI affects the growth and development of products and services and it is the essential factor in the competitive
- Socio-cultural dimension: It includes values, customs, cultures and demographic feature of the society in which the ALDI Managers of the company areresponsible to research about the social-cultural factors of the locality and where the products are sold. The muchconcern is given towards thy sustainability, ethics, culture,andresponsibility of the company because the taste of human is different from place to place and culture to culture (Kuratko, et, al., 2014).
- Legal political dimension: It covers the law of business, government and business relationship and the whole legal and political nature of the country. Laws of business regulate what is to be done and not be done by the ALDI in its operations and other functions.
- International dimension: ALDI is affected by the national and internationaldimension because it is functioning in many places. The concept of global society brought all the countries together with modern communicationnetworkand innovativetransportation system, which connects all parts of the global world (Bryman and Bell, 2015).
Some other external factors of environment thateffect the operational management and decision-making process of the leaders and managers are:
- Competitors: The ALDIpolicies are directlysubjective to the competitors of market. Company always try best to stay in competitive market for the better growth and development. The competitors and competition are frequently emerging sector under supermarket in which ALDI
- Customers: It is the primary objective of every company is to satisfy the needs and demands of The customer pays amount to the company for purchasing some products as per the requirement. The sales and profits of the companyare based on the number of customers who attract towers the prices and quality of companyproducts.
- Suppliers: They are the provider of products and service material. Itiscomplicated to deals with suppliers. It is necessary for the organization to maintain a good relationship with the supplier for a better input of quality products.
- Regulators: Government agencies, trade unions and members of commerce are the Main player of interest groups and environment who controls the organisationand its functions.
Internal factors which impact decision making and operational management are:
- Directors: They are the governing body of the ALDIwho are elected by shareholders, and they are responsible for overlooking the senior and general manager of the company.
- Owners: They invested in the organizationand have claims and rightsin the company. Owners may be a team or a single person who established the organisation or bought a market share. The policies of the company can be changed at any time by owners ( and Quaddus, 2015).
- Employees: They are the important component if the ALDIinternal environment who functions the administration task. They also change the policy of company if they are managed accordingly.
- Culture: Culture affects at large that includes visions, habits, behavior, values of the whole organization. The culture plays an important role in the internal
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.
M4 Analyse how these different factors affect your chosen business environments and wider community
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).
D1 Critically evaluate application of operations management and factors that impact on thewider business environment. Draw examples from the ALDI case study and any otherchosen organisation.
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.
- Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
- Hitomi, K., 2017. Manufacturing Systems Engineering: A Unified Approach to Manufacturing Technology, Production Management and Industrial Economics. Routledge.
- Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
- Imai, M., 2012. Gemba Kaizen: A commonsense approach to a continuous improvement strategy. New York: McGraw Hill.
- Imran, M., Aziz, A., Hamid, S., Shabbir, M., Salman, R. and Jian, Z., 2018. The mediating role of total quality management between entrepreneurial orientation and SMEs export performance. Management Science Letters, 8(6), pp.519-532.
- Jaques, E., 2017. Requisite organization: A total system for effective managerial organization and managerial leadership for the 21st century. Routledge.
- Khan, E.A. andQuaddus, M., 2015. Examining the influence of business environment on socio-economic performance of informal microenterprises: content analysis and partial least squareInternational Journal of Sociology and Social Policy, 35(3/4), pp.273-288.
- Kuratko, D.F., Hornsby, J.S. and Covin, J.G., 2014. Diagnosing a firm's internal environment for corporate entrepreneurship. Business Horizons, 57(1), pp.37-47.
- Laureani, A. and Antony, J., 2018. Leadership–a critical success factor for the effective implementation of Lean Six Sigma. Total Quality Management & Business Excellence, 29(5-6), pp.502-523.
- Naveen, K., Sunil, L., Sanjay, K. and Abid, H., 2018. Facilitating lean manufacturing systems implementation: role of top management. IJAME.