In an organisation to manage financial resources is necessary but to manage the personnel working in the organisation is also essential. The personnel of an organisation are people at top level management which includes the directors, mangers and others are employees and workers. Management is a key for smooth running of a business so is the leadership, both things go hand in hand. A good leadership ensures a perfect management. In the present report role of management and leadership in an organisation is penned down. Role, traits, characteristics of manager and leaders are also discussed here. The importance of operations management in Asda a supermarket retailer is present in this report. The factors that influence the operation management of Asda and their impact in decision making process.
a) Difference and Similarities between leader and managers:
A manager is a person who is personally liable for all the activities incurred in the supermarket. He is responsible for day to day operation of outlet. Al the employees and workers in the store reports to him. It is his duty to make a friendly working environment for employees working there. A manager is the who is responsible for all the personnel of supermarket.
A leader is a person who analyse the strength and weaknesses of the workforce as well as of organisation. The main motive of them is for developing the operational efficiency of individual and making suitable changes in the operational practices. Therefore, there will be ascertainment of appropriate revenue generation and managements of business operations. They motivate the staff in making qualitative efforts as well as productive gains in terms of analysing the costs efficiencies of firm. Encouraging the workforce to implicate their innovative ideas of operations will be helpful in uplifting the goals of firm. They analyse and encourages the innovative ideas of professionals which in turn will be useful for making suitable changes in the operational practices.
Role of leader
Leader is a person who understand people and motivate the people. Leaders guide the employee and encourage them. Leader is a main element in the management. A leader work is to invent and innovates (Mohammadi, Soleymani and Mozafari, 2014).
Leader: A leader is a person who lead a people and a achieve the goals. A leader can connect effectively to an employee. A leader leads to all the levels of the management.
A leader work in a very friendly environment with employee. A leader always cooperates with the employee.
A leader is a who set a direction to the employee so that employee can work.
A leader focus on a people that how they are working. Leader aim is to grow and develop the business on to the new level.
A leader doesn't take a risk . It tries to minimize the risk (Parisio, Rikos and Glielmo, 2016).
Function of manager
Manager work is to manage the things in a best and in a possible manner. Managers work is to organize the system in a systematic and efficient manner. Managers control the whole business. Manger is a set of processing to keep organisation functioning. A manager work is to organize.
Manager: A manager role is to perform a good duties. A manager work is to take responsibilities of a subordinates and motivates the employee working. A manager also shares the information outsides the organization. A manager decide what work should be given to the employee.
A manager plans a details for the employee so that they can work on it.
A manager work is to make a decision how to work on a business.
A manager focus on the process and the procedure of the business. A manager subordinates employee for the work.
Similarities of Leader and Managers
- Leader and Manager quality works together. Manager and Leader both create the foundation of organisation.
- Manager and Leader both discuss about the business. Leader and Manager influences and organizes authority.
- This is clear that Leader and Manager knows the business well.
- Both Manager and Leader work with people
Characteristics of Manger and Leader :
- .Leader: Leader have a strong character. Leader shows honesty , integration, trust. Leader includes a communication skills. Leader first listen and understand the point of views of staff member and then respond to there question (Zare and et.al, 2016). Leader use a effective communication skill to move the company forward and achieve a new levels of success.
- Manager: Manager motivates people or employee by providing them the meaning of a business. A manager always plan every step of business. A manager knows the gaol of business and understand the business. Manager used to always identify the problem and solve that problem.
b) Function of manager according to Fayol
According to Fayol there are five functions of managers:
- Planning: planning is the one of the hardest function from all the five function. A manager needs focus on the planning so that the business should be work properly. individual should plan , implement and review the work continuously. Planning can be short term also and long term also but should be in a continuous process. For example: ASDA company main goal is to improve the company sales (Albrecht and Dasigi, 2016). So, now a manager needs to first decide which step would be important to improve the organisation to come across with goal. So for the improvement of ASDA company important things can be done like increase the company advertisement, inventions , sales staff employee. So that the company can improves there sales in the organisation.
- Organizing: The organizing function can only perform well so that the organisation perform there business well. This means that there should be sufficient staff member so that organisation can work smoothly and can build good working structure. Organization requires different types of leadership. For example: ASDA company mangers now needs to arrange the staff member in a team so that the company can organize there business in a well manner (Yari and et.al, 2015). After the plan is done the organize a team division for the work so that the company goals come across.
- Commanding: When given instructions and orders are clearly given to the employee then employee will able know what exactly the company required from them. Commanding is the essential function of management. Manager of ASDA needs commands so that the employee know how to act on the work and what targets should be needs to achieve the business. For example: A company manager will command the work to an employee so that there should be no confusion occurs between the manager and the staff member. So the ASDA company managers will now command the staff member to work in a proper manner (Shikano and et.al, 2015).
- Coordinating: Coordinating requires a clear communication and good leadership. Coordination means that the company should coordinate with employee and there work.
Coordination should properly done in a sequence and time to determine the work. Lack of coordination can affect the negativity for the employee performance and to the organisation. For example : if policies get changed in the company them it becomes duty of manager that to coordinate with employees and make them understand with new practices. This will help in improving knowledge of workers and minimizing confusion in workplace (Mohammadi, Mozafari and Solimani, 2014).
- Controlling: A manager should be responsible for controlling the work of an organisation. Controlling means the the manager should check that everything is working according to a plan . Should take appropriate correct action . To check that plan is working according to the company. For example: Now ASDA manager will check all the process done by employees whether they are up to date or not. If the working is not going well then manger will have to make changes and have to control over operations so that it can give good results.
c) Situational leadership, systems leadership and contingency leadership
Situational leadership the operations' management of ASDA company can affected with this leadership style. This leadership style is depended on the skills and capabilities of the worker who help to completed the task in effective manner. This situation leadership styles showing the current issues in company like increased their cost, decreasing the demand of good and services. So this theory is also played an important role in following situation. Leader and manager of this organisation adjust this style for the growth of the company and increasing the work efficiency. It will be help to influences to other employees who help to achieve the common gaol of the businesses. This leadership style may change in according to situation. This theory is applied by ASDA company to deal with the current situation increasing the cost of products.
Systems leadership according to this is provides a framework for the generating their relevant ideas. ASDA is also applied this theory it is considered with skills and abilities of the employees and leader help to increasing the skills of the employees and defined all the policies of the business through effective communication way. Leaders also control their working system of the employees describe the current situation of the business. They also help to improve the quality of product with effective cost. ASDA main motive to increasing their profitability margin in systematically manner, it will help to increasing the skills and knowledge of their employees. ASDA system is very complex they operate their business in several countries. So this theory can help to manage their work in proper way. Management of this company is also play a very important role in removing the operational issues. Leader and manager both are play a very essential role in this aspect.
Contingency leadership this theory is depended on when company change their business strategies in according to changes in situations. ASDA company is also play vital role in influencing their employees for a face the current challenges in the market. Leader and manager is also focused on this style for changes the policies of the organisation in operational and production department. This theory is very helpful for the maintaining the interpersonal relationship and motivating their employees. Manager of this organisation is also the main reason increased the cost of manufacture and follow this aspect for changes in operational activities. It is a very essential aspect for understanding how leader work and how to apply this theory. This leadership theory show the qualities of leader it is also included ability to motivate their employees.
These are the theories of leaderships when ASDA is applied this aspect for the betterment of the company. It is also helpful to achieve the objective of the organisation. These are theories are help to changes in the market. The organisation main objectives to provide motivation among worker with feeling that they are also more valuable. These theories are also focused on the management for managing all the operation in effective manner.
1. Approaches of operation management:
Operation management is the administration of business to create high level of efficiency possible within an organization. It is a management that design and control the process of production . This management focuses on the how the organization produces goods and services.
An operation management involves planning, organizing, coordinating and controlling all the resources needed to produces goods and services by the company . This the management process that create value the company and its customers (Mohammadi, Soleymani and Mozafari, 2014).
- Lean manufacturing: Lean manufacturing is a system for managing manufacturing operations. It is a technique that enables us to deliver the high quality product at very low cost. Lean manufacturing focus on the process of improving company business. ASDA company identifies errors in operations through lean process. This supports in identifying issues such as over production, wastage etc. By this way it takes action to minimize such problems and improve operational efficiency (Parisio, Rikos and Glielmo, 2016).
- Six sigma: It is a discipline method or approach defect in any process . Six sigma is an innovative set of method towards improving effectiveness of a process. Six sigma process involves measurements , improvement and validation. Six sigma provides benefits to to Ikea company by helping the organisation. The ASDA company can able to transform the organisation and identifies the customer satisfaction and loss to the business. ASDA company identifies that this approach can improve the business and quality of a business .
- Kaizen: Kaizen is a Japanese word which means 'improvement' .Kaizen is refers as effort of each and every employee to improve the process of a business. Kaizen main meaning is to improve productivity, reduce waste material. ASDA company identifies that if the the manager wants to improve the work in there business can make a team to maintain the business , can take suggestion to improve what all things are there in ASDA company to be change. (Shikano and et.al, 2015)
2. Roles of Operations manager
Operation manager of ASDA plays role of mediator between the companies and various departments. Operations manager play a senior role which involves overseeing the production of goods and services. Generally operation manager play a leading role in managing the business . Individual's role is in controlling cost and keep the organisation on the track financially.The store manager of ASDA company is the in charge of entire store of a company and the employee working in the company. Store manager in ASDA company is responsible for keeping records of inventory and controlling over stock. Individual always ensure to minimize wastage so that profit of entity can be increased. A store manager in a ASDA company is a person responsible for the day to day operation of a store. For example : as a store manager of ASDA company the role is to solve problems and handle the unusual circumstances of the company. As compare to operation manager store manger play a role in managing the overall function is processed in the company. The store manger is responsible for the to make sure that the store should be clean. Employee working with store manager should also know where the store are to keep .
3. Importance of operations management
In the retail store Asda, operations management plays a key role in sufficient utilization of material and man resources for achieving better profitability with ensuring consumer satisfaction. The key importances of operations management in organisation are:
- Reduces cost of production and services: By being efficient in the operations of the management of the cost incurred in production of goods and services rendered in form of financial assistance and mobile phones (Pilkington and Meredith, 2018). For reducing the cost most grocery products are purchased from local farmers and other products directly from the company to cut in between cost of transportation. This helps in achieving the group. Departmental and organisational goal in an efficient and effective manner. The reduction in cost ultimately reduces the sales piece which results in charging less price from consumers.
- Increase revenues through improving consumer satisfaction by production of quality goods and services: The main aim of Asda is to provide the best quality of good and services to its consumers(Operations Management, 2018). The product which are put in supermarket are full of variety which is necessary because every consumer have a different need and choice regarding to same product. So to provide them various variety of a single product with the best quality results in consumer satisfaction. A satisfied consumer will surly visit the supermarket again and this will create a chain of consumer to consumers that visit the store on a regular basis. To retain old customer and attracting new customers is the main aim of supermarket. All these factors will eventually increase the revenue of supermarket.
- Reduction in amount of investment: An effective operation management focuses on creating a balance between cost and revenue for maximizing the net operational profits, while ensuring good quality for goods and services. The amount of investment can be reduced by Asda retail in their supermarket is through reduction in their cost of purchase. The cost or investment in product which they put for sale in supermarket shall be kept minimal to ensure that customers are charged with fair amounts.
- A base for innovation: In Asda all the employees and customers are always welcomed for giving feedbacks(Simpson and et.al., 2015). Operation management process is one which do not change rapidly so it a has a wide scope for innovation, so that without changing the process new ideas can be introduces and implemented. The innovation base can be made stronger by a solid ground of operations and knowledge. An innovation includes improvement in sales process, attracting the consumers to purchase from their supermarket and rendering services from them only.
4. Factors that affects the operations management of Asda
The operations management is related functions performed in an organisation. These functions can be related to finance, marketing and personnel. This deals with management of all these function for production and delivery of goods and services (Ngai, Tao and Moon, 2015). With this operations management also focuses ion consumer satisfaction with achieving its motive of attaining higher profits. All these activities involved in operations management are influenced by many factors which are as follows:
Competition at global level: The main factor that influence business is global competition. The competition faced by Asda supermarket in the same industry is growing day by day. Every country has its own trait for competition so to face and cope with competition at different level and with different have a major influence on the operations management.
Quality, consumer service and cost challenge: To provide consumers with quality product and service is a main motive of operations management. The focus is on keeping cost of product and service minimal provide consumers with quality product and achieve desirous profits. This is a tough task as to achieve all this in one time is getting difficult in present day.
Technological development: To keep a pace with modern world and tough competition advancement of technology is necessary. This technological changes sometimes are welcomed by organisation and sometimes not(Kwon, Lee and Shin, 2014). With the implementation on new and advance technology Asda can achieve better profitability with less cost.
Service sector growth: In present world the service sector have grown immensely. With this growth the completion have also increased and survival have become difficult. The main functional areas of an organisation are manufacturing and services. Organisation used to give preference to manufacturing. With the growth of service sector it has to chance its focus and concentrate on both.
Issues related to social responsibility: Every organisation is responsible to the society and have some duties towards the society. The responsibility are because it receives its material from the nature or society also the manpower for running an organisation is also provided by the society. Moreover, it operates in a society so as corporatise citizen it is responsible to society as a whole.
Shortage of materials and capital: An increase in competition clearly shows that number of firms operating in same field have also increased. With this increase in competition and number of competitors the raw material scarcity is a normal scenario.
5. Impact of above mentioned factors on decision making process of the store manager
In the above question the factors influencing operations management is discussed. With influencing the management it have a major impact on decisions taken by the managers at Asda. The decision taken by the managers for the organisation are taken by keeping in mind these factors so that with changes in the external environment of organisation can be accounted. The decision taken shall be such with incorporation of these factors.
Impact of global competition: Strategies shall be prepared andimplemented to survive the global competition (Rezaei, 2015). First analysis of competition at global level shall be done. Then the main factors of that competition shall be evaluated. With such evaluation Asda can fight the competition.
Impact of cost and consumer: A decision regarding production and service cost is most important decision for Asda. Analytical tools and accounting techniques shall be considered and applied to minimize cost. With cost reduction a desired profit margin can be added and provide consumer with a price acceptable to them. This decision will achieve the cost reduction with consumer satisfaction.
Impact of technological advancement: This is a factor which influence the decision regarding adaption of new technology and retiring old and obsolete technology. This is a difficult decision to make as new technology demands new skills and ability. Get Assignment help Perth by Australian Experts Writers.
Impact of social responsibility: With increase in social awareness it is important for Asda to take in to account corporate social responsibility(Nil and Van Wart, 2015). The government has made rules and regulation for this also, a non compliance with this can draw legal attention.
Impact of availability of material and capital: For a business capital and materiel are two factors which ensures its operations. A decision as how material can be made available at supermarket to sale shall be taken. Manager have to take decision for keeping some spare and advance capital so that it can be used at times of scarcity.
Impact of growth of service sector
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The report clearly states that in an organisation management and leadership are two crucial part for successful operation of the business. A powerful leadership endures an effective management. A manager is a person who is responsible for making people of organisation together, while a leader is a person who is followed by people at work. A manager can be a leader and a leader can be a manger but this is not necessary every time. By this report it can also be concluded that operation management plays a vital role in Asda as by this the managers at Asda supermarket were able to maximise the profit by operating in a cost effective and efficient means to reduce cost while satisfying its consumers. So it can be said that with operation management an organisation not only ensures its own circumstances and financial position but also the demand of its consumers
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