Management and Operations

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 Table of Contents

Introduction ..................................................................................................................................... 3

Background of the organization ...................................................................................................... 3

Task 1 .............................................................................................................................................. 5

LO 1 ................................................................................................................................................ 5

Define and compare the different roles and characteristics of a leader and a manager along with

the application of a range of different theories and concepts. (P1, M1, DI) ................................... 5

Task 3 .............................................................................................Error! Bookmark not defined.

LO 3 ...............................................................................................Error! Bookmark not defined.

P4 Explain the key approaches to operations management and the roles that leaders and

managers play ................................................................................Error! Bookmark not defined.

Explain the importance of Operations Management in achieving business objectives and the role

played by managers and leaders in ascertaining the same along with its impact on the wider

business environment (P5, M3, D2) ..............................................Error! Bookmark not defined.

LO 4 ...............................................................................................Error! Bookmark not defined.

Assess the factors within the business environment that impact operational management and

business decision-making and analyze how they influence decision-making. (P6, M4, D2) Error!

Bookmark not defined.

Conclusion .....................................................................................Error! Bookmark not defined.

Reference List ............................................................................................................................... 23

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Introduction

Operations management is a broad term for several smaller subjects. It becomes the single most

necessary too in the smooth operation of a company,market expansion, financial health, product

diversification and development and addressing every element that ensures a loyal customer base

(Haksever and Render, 2018). E- Commerce, global competition, customer services, productivity

and quality are all part of operations management. Operations management is a certain crucial

domain in a company that deals with the process of production of goods or services and all

related mechanisms that support the same, planning, monitoring, organizing, checking for

resources, controlling inputs, throughputs and outputs along with ensuring all requirements are

successfully met with. Goods are defined as physical items that include raw materials, parts and

also the final products such as automobiles or cell phones. These goods cost the consumers

money that are sold by a business. Services are the activities that provide some combination of

time, form,location or psychological value.

Background of the organization

ASDA is United Kingdom’s one of the most reputed supermarket retailer. The headquarters of

ASDA is situated in Leeds, West Yorkshire. Founded in the year 1965, the organization has

grown immensely to own the leading position in the United Kingdom’s retail market, third

largest in the annual turnouts. Their annual revenue was reported to be standing at £21,666

million with a total of 165,000 employee strength. ASDA has a very intricate and organized

model in their Operations Management, which draws inspiration from several existing theories

and models (Corporate.asda.com, 2018).

The perspective of HR personnel at ASDA, analyses the anatomy of Operations Management

from the regular job roles and responsibilities of the leaders and managers. The

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assignmentfurther discusses the various styles and model of leadership and the value of their

application in the organization context for the achievement of business objectives. The same

follows with a relevant infographic and presentation slides.

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Task 1

LO 1

Define and compare the different roles and characteristics of a leader and a manager along

with the application of a range of different theories and concepts. (P1, M1, DI)

The roles of leaders and managers in a company are distinct and adhere to their own respective

models though they often tend to overlap. At ASDA, a set of different operations management

disciplines are strictly followed which include the Kaizen style, Push-pull theory and Lean

thinking. The roles of leaders and managers in ascertaining optimal functioning of the various

departments can be distinguished and contrasted against each other as follows:

Leadership- A person that can influence his subordinates in order to achieve certain goals is

known as a leader.In other words,the art of encouraging and persuading human behavior for the

accomplishment of a specific task is known as leadership (Fairhurst and Connaughton., 2014).

Management-In an organization the role of the mangers is to set up the objectives, work and

tasks as per the requirements in respect to the vision and goals of the leaders (Shastri et al.,

2017). Managers often work as the bridges between the employees and the leaders. They are

known for communicating further with the employees in order to guide themappropriately.

The differences between the Roles of a Leader and Manager

Roles and Characteristics of Leaders Roles and Characteristics of Managers

Nature: Leaders pay more attention in influencing Nature: The nature of a manager is

his subordinates and it is now always essentially a highlydirective and to look after the resources,

position of a lead but any personnel with workflow and materials all work in unison to meet

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responsibility, leadership skills and knowledge certain set goals and business objectives.

might act as a leader

Task Role: The job of the leader is to create vision, Task Role: The job of a manager is to plan and

inspire and set targets for his subordinates. In a organize the execution of a certain task that is

sense the leader has the privilege of directly getting presided upon and assessed by a leader (Daft and

involved in the task with his team. Marcic, 2016).

The manager sets agendas, timetables, project

Communication is one of the key qualities of the budgets, grants and allocates resources.

leader. He communicates with his team and it is Communication is also a crucial requirement for

through the power of oratory and motivation that he the managers. It is the duty of the managers to

sees to the completion of a task explain and illustrate business objectives, incentive

targets and goals as framed by the company.

Table 1

(Source: created by author)

A few roles and responsibilities of leaders and managers in Operations Management can be

further explained with examples from the work patterns in ASDA. Since the science of

Operations Management concerns itself with the designing and planning of resources,

requirements and application and adoption of policies and approaches in view of optimizing

effective business output, both in quality and volume, the roles of leaders and managers are

divided according to their organic nature.

Managers plan, control, organize and direct in view of maximizing business output and

intelligence.

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Leaders on the contraryguide lead and actively get involved in the production of value and

business intelligence.

Managers set and monitor KPIs (Key Performance Indicators) to gauge the total efficiency and

skill of the workforce, while the leaders take the feedback on the same from the management and

work on enhancing and improving total skill and capability.

There are a few leadership models followed at ASDA that best explains the pedigree of leaders

and managers and is explained below:

The Kaizen Theory of Continuous improvement along with the application of the Lean

management philosophy forms the pillar that dictates the working styles of leaders and managers

at ASDA. The managers adhere to the 5S fold structure of the Kaizen philosophy to

streamlineoperation and the tenets of the Six Sigma help in reducing reinvention and thus

wastage of time, resources and capital.

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Task 3

Background of the company:

Overview of the company

 ASDA is United Kingdom’s one of the most reputed

supermarket retailer. The headquarters of ASDA is situated
in Leeds, West Yorkshire. Founded in the year 1965, the
organization has grown immensely to own the leading
position in the United Kingdom’s retail market, third
largest in the annual turnouts. Their annual revenue was
reported to be standing at £21,666 million with a total of
165,000 employee strength. ASDA has a very intricate and
organized model in their Operations Management, which
draws inspiration from several existing theories and
models (Corporate.asda.com, 2018).

ASDA is United Kingdom’s one of the most reputed supermarket retailer. The headquarters of

ASDA is situated in Leeds, West Yorkshire. Founded in the year 1965, the organizationhas

grown immensely to own the leading position in the United Kingdom’s retail market, third

largest in the annual turnouts. Their annual revenue was reported to be standing at £21,666

million with a total of 165,000 employee strength. ASDA has a very intricate and organized

model in their Operations Management, which draws inspiration from several existing theories

and models (Corporate.asda.com, 2018).

The perspective of HR personnel at ASDA analyses the anatomy of Operations Management

from the regular job roles and responsibilities of the leaders and managers. The assignment

9
further discusses the various styles and model of leadership and the value of their application in

the organization context for the achievement of business objectives.

P4 Explain the key approaches to operations management and the roles that leaders and

managers play

The reputation that ASDA has built comes from the organization’s strict emphasis on

management disciplines, approaches and philosophy, which are continuously monitored and

implemented by an efficient team of hierarchical managers and leaders. Some of these

approaches are explained below along with the contribution made by the managers and leaders to

ensure steady adherence to the principles and work ethics these approaches emphasize.

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TQM (Total Quality Management)is strictly followed at ASDA through the tireless efforts of

brilliant management teams that follow its basic tenets which are noted below:

 Identifying an issue or problem in the work process of an organization is the primary and

key working style in Total Quality Management. It is through this process that critical and

general problems are analyzedtointensify the outcome of the business values, products and

services of an organization that is directly proportional to the requirements of the customers

(Ross, 2017).

 Planning or envisioning an improved state of function as compared to the present state. This

involves collection and analysis of business intelligence by the management and analyzing

same in the backdrop of Gap analysis and other relevant tools to chalk out an effective

strategy

 Implementationis the process that follows the planning stage,and it always concentrates on

team effort. While the role of the leaders playsinto forming better and efficient teams that are

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 aligned with business objectives and their highly customer-centric approach, the manager's

role is to integrate and coordinate different teamsto make a combined effort from all the

spheres.

 Evaluationprocess does not only follow implementation but is present at each step, that is

the reason, TQM runs with a minute system of congregated teams and continuous evaluation

and feedback. However, before the launch of a new plan, a major evaluation is always due.

 Final Launch is the product of the final strategy that focuses on making the best

interpretation of customer needs and requirements. HenceTQMfocuses fully on the value a

business offers to its customers and consumers.

JIT (Just in Time) Management: is Time or JITwas launched with the innovation at the core

production operations at Toyota,and it refers to stocking or production of goods in line with the

ratio of demand. In other words,it is a process that reduces wastage and inventory maintenance

by storing just what is required to meet demand promptly. It requires a thorough knowledge of

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the market, demand trend and ratio, to forecast and anticipate demand(Hill and Fredendall,

2016). It requires the managers to gauge, compare, and interpret market intelligence and chalk

out a proper strategy. Since JIT requires a quick response, it requires well-bonded and works

efficient teams that can act quickly on task directions. Leaders in JIT have to adopt a keep

participative and laissez-faire leadership style to work effectively with the team. Due to Brexit,

leaders and managers are able to focus on the trade flows, which lead to support a new type of

manufacturing and that makes stoppages at the border.

Kaizen Theory of Management

The Kaizen Theory of management is a set of comprehensive management, manufacturing and

other operational philosophies that are driven by one basic formula, continuous improvement.

Kaizen is a Japanese word that refers to the term ‘improvement’. Since improvement is an

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essential element in the growth of a business, thus Kaizen theory is implemented by all the

organizations that seek to amplify their market strength.

Lean Management Style or Six Sigma:

Lean management is the process where goods and materials are manufactured with the minimal

waste of raw materials used in the method.The philosophy runs with a view of running with the

minimal wastage. Lean management process allows surveying the market and knowing the

requirement of the customers and no such product gets manufactured in greater numbers beyond

the market importance that could go on a waste.

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Explain the importance of Operations Management in achieving business objectives and

the role played by managers and leaders in ascertaining the same along with its impact on

the wider business environment (P5, M3, D2)

The management approaches that are followed at ASDAcan be explainedregarding the high

degree of relevance, coordination and flexibility they bring to the overall chains of operations

and administration within the organization. It can be explained in the following terms:

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Reduction of Costs: The implementation of Kaizen along with the JIT and Lean philosophy

works hand in hand in the reduction of cost. JITprompted quick and informed forestalling of

demand, thus necessitating Kaizen, which demands a closed-loop workflow for continuous

improvement. These principles, in turn, assert the adoption of Lean becausethe reduction of

wastage is the factor that shouldered the invention of JIT. It thus reduces negative variable costs,

increases operational efficiency, and optimizes production to avoid superfluity and overstocking

of inventory.

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Customer Satisfaction: The implementation of TQM is from high customer orientation

philosophy in business. The management principles of ASDA originate out of a deep customer-

centric philosophy, which explains how their workflow is always in line with the unwavering

effort of optimization of the value they offer. This forms a basic tenet in the organization’s

business visions. TQM prompted by JIT and Lean ensurea steady Customer Satisfaction Index.

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LO 4

Assess the factors within the business environment that impact operational management

and business decision-making and analyze how they influence decision-making. (P6, M4,

D2)

Various internal and external factors affect decision-making within organizations. These factors

are an active determinant of the policies adopted by the organization as they are vital to the

sustainability and success of the business. These factors originate out of certain principles and

ethics,and the key factors have been discussed below:

Corporate Social Responsibility or CSR originated as a business model with the coinage of the

‘corporation’ and the ‘corporate citizenship’ status but soon became a pressing concern for

international, national and territorial keepers of law and became self-regularized set of ethics to

be followed by corporations. The layers of CSR and Corporate Social Performance are very

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complex owing to its multilayered naturein a social context (Shabanaand Ravlin, 2016). The

corporations, which specify a certain revenue turnout has certain social, economic and

environmental responsibilities, whichnecessitates the companies to give something back to the

community regarding economic welfare, which might mean the provision of employment for a

nation or mean avoiding toxic emission into the environment, or planting more trees. It is very

important for a company to have a good CSR record to be in the good books of their customers

and now ever more than before, in this information era since the media plays a vital role in

spreading of news and raising awareness.

Various organizations have emphasized environmental Responsibility/ Sustainability in

recent times due to the degradation of the environmental conditions. The emissions of toxic

gases and wastes by the factories into the atmosphere and chemical solutions in rivers and other

water bodies have critically affected the environment.The growth in the population has

drastically intensified the demand for products in the market. Thus, the organizations and

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industries are manufacturing a larger scale of various products. To balance the manufacturing

process along with the environment, different organizations are carrying out various

environmental friendly methods such as recycling of waste materials, eco-friendly packaging,

energy-efficient equipment and machines etc. for reduction of carbon footprint (Du, and Basch,

2015).ASDA encourages its customers to use recycled paper bags and packaging materials. The

retail organization also recycles inedible products that remain unsold for a longer duration of

time. Thus it has gained sufficient goodwill among the customers and has efficiently managed to

contribute to the sustainment of the environment.

Stakeholders

These are the different people that are associated with an organization and contribute to the

workflow, flow of capital, profit and loss. Therefore Stakeholders are the people that are the

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employees, suppliers and as well as the customers of an organization. The flow of money around

an organization effects all the people associated with it.

ASDA in recent times has satisfied their stakeholders in spite of the hard competitive market.

Brexit is the colonial term for the UK traders to deal in the international market, which means

UK traders will not get ant privileges from EU. This has changed the course of business of UK

traders and ASDA is part of this. By the end of 2016, the profit for ASDA was £791.7m, which

was noted as 5.7% fall. The similar fact has been shown in the next year and again in the year of

2017 ASDA faced the downfall by 2.8%. It can be assumed that this time the downfall is lesser

than the previous one but Brexit has affected the business so far. This is the reason it is quite

difficult for the organization to deal in the international market (Moore, 2018).

Conclusion

 Thus, it becomes clear that within an organisational

context, operations management is one of the most
important element to be successful in the market. A
leader is the main person to head the operations and
gain success for the organisation.

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Conclusion

Operations Management thus describes the science of managing various functional vertices and

its operations that all relate to the ultimate production of goods or services and vital business

intelligence. The assignment covers the various roles and responsibilities of the leaders and the

managers that jointly fulfil the ambits of Operational management. The different approaches to

leadership and management have been explained through the operations of ASDA. The study

then follows into a discussion of the various management philosophies that are key to the

optimization of business output. In this regard, the different aspects of each approach along with

the benefits that can be harnessed from their collaborative application in the production of

business value have also been explained. In the concluding sections, the different factors that set

ethical and moral yardsticks like CSR and sustainability complete the discussion of operation

management.

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Reference List

Corporate.asda.com. (2018). Company Facts - ASDA Corporate. [online] Available at:

https://corporate.asda.com/our-story/company-facts [Accessed 5 Jul. 2018].

Daft, R.L. and Marcic, D., 2016. Understanding management.Nelson Education.

Du, Y. and Basch, M., 2015.The Next Frontier of Corporate Social Responsibility: Discovering

Consumer Expectations.

Fairhurst, G.T. and Connaughton, S.L., 2014. Leadership: A communicative

perspective. Leadership, 10(1), pp.7-35.

Haksever, C. and Render, B., 2018. Service and Operations Management. World Scientific

Books.

Hill, E. and Fredendall, L.D., 2016. Design and Management of the Transformation...................

Review of Volume and Layout Decisions Manufacturing Planning and Control Systems

Influence of Supply Chain on Demand Management Detailed Material Planning Detailed

Capacity Planning Just-in-Time (JIT). In Basics of Supply Chain Management (pp. 129-

156).CRC Press.

Moore, J., 2018, About Asda is to the supermarket sector what Brexit Britain is to Europe,

available at: https://www.independent.co.uk/news/business/comment/asda-is-to-the-supermarket-

sector-what-brexit-britain-is-to-europe-a7872706.html [Accessed on 13 July 2018]

Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.

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Shabana, K.M. and Ravlin, E.C., 2016. Corporate social responsibility reporting as substantive

and symbolic behavior: a multilevel theoretical analysis. Business and Society Review, 121(2),

pp.297-327.

Shastri, Y., Hoda, R. and Amor, R., 2017, February.Understanding the roles of the manager in

agile project management.In Proceedings of the 10th Innovations in Software Engineering

Conference (pp. 45-55).ACM.

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