Management and Operations

Management and Operations

Introduction

Operations management in a company is a factor that regulates the efficiency and effectiveness of the business strategies (Schnepp et al.,2017). In this report, the leadership and management function will be defined in an organisational context of Marks and Spencer. The roles and characteristics of the leader and manager have been compared in the context of the company. Various situational contexts will be considered to determine the roles of a leader and the functions of a manager in the business environment. The different leadership styles and theories have been used to explain the operational impact on the company's effectiveness in the market. The key approaches that have been used by Marks and Spencer which do affect the decision making capability of a leader and manager have been analysed. Importance and value of operations management in achieving business objectives and the external factors existing in the business environment influencing the decisions taken by leaders and managers have been assessed in this report.

Organisational Background

Marks and Spencer is a British multinational retailer that has its operations worldwide. Marks and Spencer has a heritage of 137 years as it had been found in the year 1884 by Thomas Spencer and Michael Marks. The company is headquartered in London, England, UK and has its store locations in 1463 Locations. Marks and Spencer is a public limited company and has its listing on the London Stock exchange as a component of FTSE 250. The CEO of Marks and Spencer is Steve Rowe that has a team of 80,000 employees that work for the success and growth of the organisation (Marks and Spencer, 2021).

Activity 1

Definition and comparison of various roles and characteristics of a leader and manager.

Leadership in an organisation is visionary that is known to set the goals and objectives that will define the company’s success in the market. It is defined as an activity that emphasizes innovation with less concern towards interpersonal issues for the success and growth of the company. Management function of a company determines the execution of strategies that have been formulated by the core team members of the company. Managers are not described as visionary but the people that manage the resources that are at the company’s disposal (Liphadzi et al.,2017). The comparison of various roles and characteristics of Management and Leadership will provide and insight into the operation implications of the work environment. The singularized focus of the activities that are performed by both the principles of leadership and management affecting the operations of the company has been discussed below.

Table No. 1: Differences between the role of a manager and leader

Examining examples of how the role of a leader and the function of a manager apply in different situational contexts.

The role of a leader and the function of a manager determine the business decisions that will be taken for the success of the organisation in the market. The above distinction has given an insight into the organisational role of a leader and a manager in M&S. Examination of how the role of a leader and the function of a manager can be applied in different situational context has been done below.

Slow

The slow situational context is where the leadership function is to observe the divisional progress. There is no change in the strategic directions that have been laid out by the business and the managers role is to observe the operations of the company and establish stability in the market. Ryan Lemon is the head of the retail supply chain. The leader has set directions to reduce the waste in the supply chain management in the company (Davey, 2020). Operational efficiency in the company will be ensured by the imposition of this strategy. The managers have been directed to observe the logistics management in an organisation like M&S. The above scenario is an example of a slow situational context where the leader is setting directions for the growth of the company by implementing minor changes in the business and the manager is observing the operational efficiencies of the company.

Medium:

A medium situational context is when the leader integrates market research to accumulate changes in the business environment. The role of the manager is to ensure efficiency in the learning environment created by the staff in the company. Steve Rowe the CEO of Uber has created a supply chain initiative where the group tests their new ideas (Davey, 2020). The initiative aims at reinventions that will integrate small inventions in the business environment of M&S. Manager of the company is supposed to perform the reporting function that will ensure the effectiveness of the strategy.

Fast:

Motivational leadership exhibiting extrinsic motivational factors is the leadership style that is appropriate for the fast changes that are occurring in the market. The manager of the company is responsible for implementing situational aid with training and development programs. Likewise, the advancement of the Covid-19 situation has resulted in the market having to react quickly to sustain their position in the business environment. The Christmas period comprises of complexities in consumer behaviour for M&S. Marks and Spencer’s leader has planned their replies to trade through the Vangarde program that embrace new technology (Jefferson-Brown, 2020). The management has to invest in the training and development of the employees to implement the new programme.

Applying different theories and models of approach, including situational leadership, systems leadership and contingency

The leadership function is essential to understand the operational impact of the company. Application of different theories and models of approach has been done in an organisational context of Marks and Spencer.

Situational leadership

The above-mentioned leadership style encourages leaders to analyse the situation and then take corrective action according to the situation. Situational leadership model determines various levels of authority that the leader should have according to the situation. The roles of a leader are not constant in this leadership style. This leadership style believes that no one style can help the organization grow in the business environment (Cote, 2017). Delegating, Supporting, Coaching and Directing and the 4 situational leadership styles that have been determined in this model.

The advantages of situational leadership are employee development, motivation, Productivity and employee relation whereas the disadvantages of the situational leadership are confusion, external factors and perception in the market. In respect to application, Steve Rowe is a situational leader that uses his authoritative position in Marks and Spencer according to the situation in the company. Furthermore, the applied satire, delegates the work to his managers, supports the organisation by implementing the necessary change, coaches the subordinates to ensure the growth of the organisation and take decisions that will enable the growth of the company.

Systems Leadership

Systems leadership is when a leader utilises their skills set to fuel the growth of the business. This leadership style is effective when the business environment is skills driven and requires expertise from the leader to lead the company. Systems leadership is a collective form of leadership that determines the company’s departmental growth in the business environment (Henry, 2017).

The disadvantages of this leadership style are that it is over conceptual, unpractical and affects interpersonal relationships. On the contrary, the advantages of systems leadership are the use of technical expertise in the operations management of the company.

In respect to implication, M&S have been able to secure 700,00 new downloads under the leadership of Stephen Langford (Russon, 2020). Stephen Langford’s expertise in digitising the business processes has helped Marks and Spencer becoming a digital business. It helps to execute the in systematic manner.

Contingency Leadership

The contingency theory of leadership states that a leader should be able to adapt to a situation and take corrective action with his decisions making capabilities with a productive approach. A contingent leader prioritises the needs of the business under any circumstances and examines each situation with his analytical skills in the current situation (Harrison, 2018).

Advantages of the contingent leader are the adaptive behaviour, analytical capabilities, scope and variability of leaders. On the other hand, the disadvantages of a contingent leadership style are the wastage of resources, feasibility, complexity and superficial decisions.

The head of M&S clothing and home division is Richard Price had to deal with the online growth of the business as an applicable notion. M&S bought the Jaegar brand out of administration as a strategy for inculcating third party brands for increasing the sales of the business (Donnelly, 2021). The contingent leader set the plans to accelerate this transformation that fuelled the online growth of the business.

Chaos theory

The chaos theory states that market loss and the projected loss leads to the attrition and financial concerns in the company. Project losses are a result of the market loss that happens on the top of the company and the projected loss that takes place due to the inefficiency of the middle management of the company (Skiadas and Skiadas, 2017). Chaos theory is useful in determining the operational management of the company and the contingencies that might be faced by Marks and Spencer in the business environment. The application of this Leadership decisions determine the market chaos and the management decisions determine the projected chaos. The leadership function can regulate the concerns in the internal business environment to avoid any further contingencies.

Activity 2

Key approaches to operations management and the role that leaders and managers play.

Operations management is a business function that determines the departmental efficiencies in the business environment. The roles and responsibilities of the leaders determine the success of the business with operational efficiencies. Functions of the manager determine the operational capabilities of the business function. Below mentioned are the key approaches to operations management that control the organisational capabilities of M&S.

Lean Manufacturing

The methodology that propagates the agenda of reducing the input and maximising the output in the production facilities of a company is called lean manufacturing. Lean production identifies the customer's perception of value and targets the production process to satisfy the needs of the customer. The value stream of the resources employed is mapped to create a flow in the business environment (Kumar et al.,2018). There is a continuous process development like employment of Kaizen techniques to enhance the flexibility in the organisation. During the Covid-19 crisis, M&S had to increase their operational efficiencies by implementing a leaner operations strategy.

According to the implication of new strategy the company wants to become leaner to sustain the current economic situation. M&S are reducing the expenses by cutting down 7000 jobs to reinvent itself (Murden, 2020). The manager of the strode to implement this strategic direction by evaluating the performance of each employee. Lean manufacturing enables the company to minimise the waste produced and utilise the available resources of the organisation in an optimised manner.

TQM

Total quality management detects the overall quality of the business systems that have been employed in the production processes. The streamlining of business activities ensures the elimination of errors in the final product or service. Production processes ensure the maximisation of customer experiences involved in the production processes. TQM is a manufacturing technique that is a continual development process that is accountable for the overall quality of the process and the product (Abbas, 2020). The customer-centric approach that has been designed as a cohesive vision with a systematic approach towards the development of a particular area is the product of the application of TQM techniques. M&S CEO, Steve Rowe appointed two new executives that will focus on optimising the quality of the products. The new strategy of the company is to focus on quality and style (Hughes, 2021). In addition, the set of standards that are set by the company to ensure the optimum quality of the product reflect both the internal and external priorities. Focusing on the improvement of quality TQM techniques are applied to maximise the organisational output.

Supply Chain management

The flow of goods and services in a business regulate the operational efficiency for maximising the customer value. Supply chain management deals with the area of developing information systems that will make the business model as economical as possible. SCM makes the excess costs and time that are required in the transit of goods diminish with the implementation of strategies. M&S addressed the operations management of the company by addressing the internal supply chain issues (Conti, 2021). The leader of the company played the role of laying out a vision that will enhance the presence of the company and also optimise the supply chain efficiencies. In this esteemed company showed effort in bringing in new third party companies that have a similar brand offering to take up the market space and sell their products under their name. The logistics of the company improve the productivity and quality that is delivered by the various departments in the business environment.

Importance and value of operations management in achieving business objectives.

Operations management of the company determines the efficient implementations of strategy formulation in the business environment. The value and importance of operations management in achieving the business objectives has been explained in the organisational context of M&S below

Business development

The leadership approach of M&S is dedicated to integrating innovation in the business processes of the company. Business development is one of the main goals of the company which leads to profitability. Integrating change in the business environment to establish a competitive advantage in the market. Increased market share of the company will enhance the sales and profitability of the company. M&S has a curated approach towards digitising its processes for developing its business worldwide (Lauchlan, 2020). According to the new strategy, the company is developing its operations management and supply chain activities to become leaner and profitable in the future.

Productivity

Productivity in the business environment will determine the success and growth graph of the business. The leader of the company should apply distinct leadership styles to achieve maximum productivity from their employees. M&S is a retail company that relies on employee behaviour for its customer service. Employee satisfaction is of utmost importance for the company to achieve positivity in the business environment (Kurdi et al.,2020). The morale of the employee should be boosted through the application of suitable leadership styles and functions of managers. Importance of productivity of M&S is integrated operational efficiencies that can be achieved through operations management techniques.

Stakeholder engagement

Stakeholder engagement is essential for the viability of the business in the market. The satisfaction and consideration of stakeholders will enable the company to execute its strategies efficiently. In respect to importance primary stakeholder of M&S are the owners, investors, customers and employees of the company. The external stakeholders are the community, creditors and government. Stakeholder engagement is an operational process that determines the consideration of the above-mentioned entities for a smooth corporate process.

Provide great value and quality to customers

The product quality influences the value perception of the product offering of the company. Value perception influences the purchase decisions of the customer. Importance of sales and profitability of the company are heavily influenced by the provided value and quality of the company. M&S has a customer-centric approach that makes the company target its operational efforts towards customer requirements. In respect to value, M&S have identified its core strategy to provide quality and value to its customers (Phillips, 2020). The operational efficiency of the company determines the quality that is offered. Customers will feel they have received value against their purchase through the determination of the quality offered by the company.

Assess the factors within the business environment that impact operational management and decision making by leaders and managers

Corporate Social responsibility

To achieve a sustainable business a company should regenerate its capital to satisfy the societal and environmental objectives of the company. M&S aim at building a profitable business through a consistent growth pattern. The companies CSR objectives are fulfilled through the execution of a business model that will create value and deliver products through sustainable business practices. M&S offer products that follow a sustainable business approach (Marks and Spencer, 2021). The leaders and managers can take necessary decision to establish the CSR objectives that have been laid out by the company. In respect to operations of the company are aware of this business objective and hence the production and distribution process is carried out with a sustainable method. Employee Relations

Culture values and Ethics

The lifestyle and surrounding area in which the company is operational influences the efficiency in the work environment. Pragmatic, conservative and progressive societal behaviour is an external factor that determines the operational management within the business environment (Cre?oiu, 2017). M&S is a company that has its presence worldwide and hence has to consider the culture, values and ethics in the geographic location of the stores. This factor within the global business environment influences the leadership decisions making about the product offerings and consumer perceptions of the company.

Logistics and Distribution system

The supply chain management of the company determines the operational efficiencies of the company. Logistics and distribution channel of a corporation regulates the time and costs required for the capital realisation of the company. The operational cycle of the company is concerned with the time required for the capital realisation in the logistics and distribution channel of the establishment, which impact the decision of manager. M&S CEO, Steve Rowe has implemented a system that tests out new ideas to increase their operational proficiency in the business ecosystem.

Customer service

The customer-centric approach of the business regulates the internal activities of the company. In respect to value and quality that has been perceived by the customer determine the market and brand value of the company. M&S provide products that are known for their quality (Russell, 2017). The determination of the product quality is done by the operational management of Marks and Spencer. Leadership and management function have a collaborative approach towards determining the exact price and value that should be offered in the market.

Competitors

The pricing strategy of the company is a competitive pricing strategy where the competitors play an important role in determining the profitability of the company. Competitive pricing strategy is when the organisation positions itself in the market in such a way that it can be perceived as a higher quality of the product than its customers. The prices that are offered by the competitors of Marks and Spencer like Aldi, Asda and Tesco directly influence the decisions taken by the leadership and the management function of the company (Nazir, 2021).

Conclusion

From the above discussion, it has been concluded that the role of a leader is based upon the essentials that are required for inspiring the team with critical thinking skills. The corporate structure gives the managers the liberty to tackle issues with the employees that will encourage them to enhance the productivity of their work. In context to stabilised process will enhance the activities that are performed by the manager. Various examples of M&S have been provided in this report to explain the role of a leader and manager in different situational contexts. Leadership theories like Situational leadership, contingency leadership, systems leadership and chaos theory have been used to determine the leadership function in Marks and Spencer. The operations management of M&S and the role of leaders in it has been examined by stating the TQM, Supply chain management and lean principle factors. In addition, the importance of operations management in achieving business objectives have been stated. External factors like CSR, Culture and values, Logistics and distribution, customer service and competitors have been assessed to determine the decision making of leaders in operations management.

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