Management and Operations
Executive summary
The main objective of this report is to shed light on the topic of operations management considering Lloyds Bank as the chosen organisation. Differences between a leader and a manager will be highlighted and various leadership theories will be used too. Actual instances from the banking group will be taken for in-depth analysis and real evaluation. The importance and value of operations management will be highlighted. Then the impact of business environment factors will be analysed to know how they affect the decision-making process.
Introduction
Operations management can be defined as a process that involves planning, controlling and supervision of production and manufacturing processes and service delivery. It is an important business function because it assists in ineffective management and control of goods and services as well as people. Here in this report light will be shed upon the concept of operations management considering Lloyds bank as the case study organisation. The different roles and functions of a leader and manager will be compared and defined. Various theories and models will be used for in-depth evaluation and knowledge. Lastly, the factors that affect operations management and the decision-making process will be highlighted.
Company background
Lloyds Bank is a Commercial and Retail bank in the UK with branches spread across Wales and England. The bank is ranked amongst the top four ‘clearing banks’ in the world and the largest bank in Britain with 65000 employees and 30 million customers. It was found out around 2 ½ centuries ago by John Taylor and Sampson Lloyd. As per 2020 statistics in Q3 the bank earned a net income worth 3.4 billion Euros (lloydsbankinggroup.com, 2021).
LO1:
Define and compare the different roles and characteristics of a leader and a manager
Leader: A person who has a different point of view to everything and a unique vision and thus aims towards improving things and making people move towards a better vision. Leaders are strong-minded people who can turn the vision into reality, however by putting people first by offering them a proper direction to follow (Bidston and Granville-Chapman, 2020).
Manager: A person responsible for motivating and supervising people within an organisation. A manager is known for directing the people towards the progress of an organisation. They stand a strong support system for all the employees as they are an expert in one owns the field.
Henri Fayol the great theorist has defined the key functions of a manager which are so crucial in carrying out all the activities. He stated that all the function are universal and every manager perform these functions on a daily routine (Andreassen and Natland, 2020).
The main five managerial functions defined by Henri Fayol are as follows:
Number one is planning; this is one of the most important functions of a manager which involves planning for future events and conditions, then developing objective which is strategic to fulfil the goals and aims. Evaluating future contingencies and further planning and shaping is vital. Second is organising; keeping the workforce organised efficiently by focusing upon the structure of the organisation and its alignment with the activities within the organisation is vital. Recruiting and training staffs who are skilled and knowledgeable is their duty. Commanding; Supervision of the workforce every day is very important and inspiring them as well as a major function of a manager. Then communicating everyday duties and responsibilities and making sure they are done. Lastly making sure that everyone is working in alignment to the company policy is crucial. Coordinating; maintaining the harmony within the organisation and between the activities and procedures is the duty of the manager. They also ensure each unit and activity complement each other. Controlling; keeping control upon the activities of the company and making sure they are in line with the objectives and policies is a crucial function along with looking for deviations and suggesting corrective measures too.
Henry Mintzberg has further stated about 10 different roles and responsibilities that a manager carries out during work. He divided them into three different categories and each role is crucial for maintaining a balance at work and has positive relations among peers (Altamony and Gharaibeh, 2017). The three main categories are as follows:
Interpersonal roles:
Figurehead: Is responsible for legal, ceremonial and social matters and thus they represent the company professionally. Leader: is known for communicating, coaching, inspiring the teammates along with extra support and guidance. Liaison: Is supposed to create networks and connections outside the company.
Decisional roles:
Entrepreneur: Handles innovation and creativity and thus inspires change within an organisation by implementing new ideas. Disturbance handler: knows how to manage issues both internal and external and removing barriers. Resource-allocator: knows proper allocation and focus upon different resources like pieces of equipment to funds. Negotiator: knows how to participate and direct all negotiation in the company.
Informational roles:
Monitor: Tries seeking information from outside the company to assist the operations in the company and identify the issues too that require fast action. Disseminator: is responsible for passing on important information to the workers and subordinates within the organisation. Spokesperson: knows how to relay information from external sources by acting as a spokesperson for the company.
Difference between a leader and manager
Since there are quite a few similarities between a manager and a leader, there are many differences too which are as follows:
Basis of distinction |
Manager |
Leader |
Aim |
A manager aims towards focusing upon the things happening within an organisation. |
Whereas a leader fully focuses upon the people he is responsible for handling. |
Duty |
Managers give direction and orders to people by monitoring them. They work in alignment with the norms and culture of the organisation. |
A leader inspires and motivates all the people he is handling within an organisation. Leaders create and build up a culture of change (Guhr et al., 2019). |
Table 1: Differences between a leader and a manager
(Source: Created by learner)
LO2:
Examine examples of how the role of a leader and the function of a manager apply in different situational contexts
On an everyday basis, each organisation has to change situations that require a different set of treatment and handling. Both leaders and managers have different roles and responsibilities that they apply in different situations. In case of Lloyd’s Bank the role of a leader and functions of a manager are as follows:
Stable situation: When the manager is assigned with a fresh task by the top levels and he is responsible for getting it done by his teammates. In this situation, the status quo is maintained as the everyday activity is to be carried out and no major changes will take place. However, the manager makes sure that the skills and capabilities of employees are enhanced so that they can carry out the activities properly and the leader makes sure proper guidance and supervision are given to the employees (Cote, 2017).
Slow to moderate changing situation: The top-level management has decided to organise an induction for up-skilling the employees and implementing a few changes within the organisation. In this case, since the employees will be taught new skills and techniques for work the manager will make sure that relations are maintained for better employee retention and improvement in morale for better motivation. Since new techniques are to be used, employees need to implement them at work at a moderate speed; the leaders will make sure proper guidance is provided so that the productivity is not harmed. Further counselling of employees is also crucial for making them understand the need of the change taking place so that there is no resistance, thus the leader will communicate the need of the change and make it is being followed.
Fast-changing situation: The current situation of pandemic and the remote working culture is a fast-changing situation at Lloyds Bank. More than 700 staffs were deployed in-home working roles from 2021 which is indeed was a rapid change in the situation (Felstead and Henseke, 2017). A situation that changes very rapidly tend to increase the rates of turnover thus it requires proper attention and focus. Both the managers and the leaders required to handle the situation with tact and precision as employees showed resistance to such a huge and rapid change (Cote, 2017). The managers created strategize for the Work from the home situation by distributing desktops, reimbursements plans for internet and so on. Whereas the leader made sure all the employees were aware of the new policy and how to respond in the setup on a daily routine.
Apply different theories and models of approach, including situational leadership, systems leadership and contingency
Some many models and theories reflect upon the different leadership styles which are as follows:
Situational leadership: This theory states that no specific style works with each situation after the situation and tasks are analysed an appropriate leadership style can be applied. As per the theory leaders are effective when they can effectively choose a style according to the situation. For instance when the group members lack skills and knowledge the telling theory can be used where proper guidance is offered (Harrison, 2018). Then if the members are enthusiastic and have a will but they lack ability the selling theory can be used where ideas are sold and involve a back and forth relation. Third, if the members have the skills but are not willing to take any responsibility then a participating theory can be used where less direction is required and members can take an active part. Lastly, if the members have the will as well as the correct skills then a delegating theory can be used that involves a less interactive approach. Group members will be able to take maximum decisions (Meier, 2016).
Contingency theory: This theory states that the effectiveness of a leader is quite contingent about whether or not their style will go perfectly in a particular situation. As per the theory, one style can be effective in one situation and ineffective in other. For instance, in a situation discussed above the remote working culture at Lloyd's Bank, this theory can be applied perfectly as the managers and leaders will get an opportunity to apply different techniques and tactics to different issues present. Since the situation will require constant supervision upon employees the management will be able to take appropriate actions without having to limit any activity (Popp and Hadwich, 2018).
Systems leadership: This theory is a combination of coalition building, collaborative leadership and systems insight. Based on this theory the leader will be able to enhance and promote creativity and innovation by encouraging people to think differently. Through this approach, the vision of the leader will be passed on to the workers which will enhance the performance and productivity levels (Cote, 2017). At Lloyds, this theory will enable in allowing the workers to have a far-sighted vision which is so vital for a bright future. It will also enable in minimising misuse of any resources that can lead to sustainability (Harrison, 2018).
LO3:
Explain the key approaches to operations management and the role that leaders and managers play
Since the concept of operations management comprises of getting thing done with the help of different functions carried out by the managers and leaders there are many approaches to operations management too which help in easy objective fulfilment and effective use of resources and processes.
The most common approaches are as follows:
Total quality management: This approach is all about having a look at all the activities and tasks which are supposed to be carried out with a motive of having quality control and improvement at work. The approach focuses upon improving the performance and quality of all the departments, processes and functions across the company. Lloyd’s being a retail bank can use this approach to ensure its quality is maintained. The bank aims to serve quality service to its customers and through this approach, the skills of each employee can be used effectively by uniting them. Additional extra features can be added like multifunction kiosk and expert service and so on (Pambreni et al., 2019).
Six-sigma: In this approach, the main focus is upon offering the organisation with tools that will assist in enhancing the capability of all the business processes and activities. The approach can be used in the bank for improving and advancing the existing process. Through this approach in Lloyd's bank, the performance will enhance and process variation will decrease which will further allow in the reduction of faulty acts and defects. As the defects will reduce the employees will be much more productive and eventually, it will lead to enhancement in profits and better rates of employee motivation (Pyzdek and Keller, 2014).
Kaizen: The term refers to continuous improvement or change for the better. This approach is based on the logic that improvements and enhancements take time but it does improve with time. Through this approach at Lloyd's bank teamwork can be enhanced and better rates of innovation and quality can be achieved (Lemma, 2018). With the approach, the bank will be able to enhance its core competitiveness. Customers want expert advice especially relating to money thus this approach will help in comprehensive thinking and improvement of processes as well.
Explain the importance and value of operations management in achieving business objectives.
Business objectives of Lloyd’s Bank:
The bank aims towards helping Britain towards prosperity by creating a responsible business organisation that focuses upon the needs of the customers and thus delivers to the shareholders long term sustainable success (lloydsbankinggroup.com, 2021).
Operations management and its activities are lately becoming a critical factor in the success of financial institutes. The activity of OM focuses upon the new trends and challenges that are to be addressed by the operations manager and thus create a balance between the business requirements and optimal costs.
The value and importance of operations management that allow in achieving all business goals of Lloyd’s Bank are as follows:
Better rates of engagement at work: Operations management assists in better employee engagement and helps in defining the roles and responsibilities respectively to each worker which thus allows smooth flow of activities. At Lloyd’s bank OM activities like proper planning, designing, allocating tasks and so on allows better performance rates.
Highly motivated employees: Along with good rates of engagement, the operations manager ensures that the workers are aware of their respective roles and responsibilities within the company. This is because due to unawareness employees feel left out and de-motivated, thus it is the responsibility of the operations manager to clearly define all the roles so that performance rates are maximised (Machuca et al., 2018).
High-quality service: Since the bank offers financial as well as retail services to the people the operations managers try to focus upon each process and maintains a checklist to determine if everything is at the place and each worker is efficient with their respective duties. This allows in fewer errors and mistakes which is so crucial for good results.
The satisfaction of customers: The feedbacks and reviews received from the customer can either enhance the reputation or break it as well thus satisfying the customers is the key. As an operations manager, they must conduct a service quality management process so that all possible loopholes and gaps are identified and thus can be corrected. Since the bank is a service provider, customers stand as the lifeblood thus satisfying them is the main priority.
All the points mentioned depict the importance of operations management within Lloyd’s Bank and its contribution towards the fulfilment of business objectives. Thus carrying out all the activities of operations management helps in proper utilization of its benefits (Machuca et al., 2018).
LO4:
Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers
As it is known that each business organisation functions and operates in a different business environment there are various factors both internal as well as external that have an impact upon the functions of operations management as well as upon the decisions that are made by the management.
Thus the factors considering to Lloyd’s Bank in its business environment are as follows:
Corporate social responsibility: Within Lloyd’s banking group their CSR comprises of environmental, social and ethical issues. The CSR strategy is set by the chief executive and each section is given major importance. The bank offers various community programmes such as charity trusts, patriotic funds, benevolent fund and so on where the main aim is to help people in need. These activities enable the company to keep its employees united which indeed is for a good cause (VERCIDA, 2021). The CSR initiatives enable the bank to have a good reputation within the market, attract attention (positive) and thus avoid unnecessary expenditure through operational efficiency (Wang and Sarkis, 2017).
Organisational culture: The culture within the bank prioritises the customer by putting them first, and thus customers are at the core of every activity. Other than this the culture within the bank is to create a difference (lloydsbankinggroup.com, 2021). The people trust each other and work in a collaborated manner so that the best is received from each one for each other and of course the customers. Irrespective of the roles and designations each one is offered a chance for the person and career development. Since the cultures allow opportunities for growth it helps in retaining the best talents and thus inspires innovation.
Sustainability: The bank has stated that climate change is the biggest problems that are affecting the society, thus as the biggest financial service company it aims towards having a greener future altogether. The bank has set an aim that by 2030 it will reduce carbon emissions by 50% (Ji et al., 2017). For sustainable approaches, an organisation demands the creation of new goals and new policies for the operations development area. For this initiative the bank has collaborated with the government, customers as well as the market to tackle the issue. Also, the bank has made a commitment that is to transform the economy as well as the society towards the aim. The initiative enables in better collaboration among the employees as well as the bank and the society.
Conclusion
Thus it can be concluded by saying that both managers and leaders have respective roles and responsibilities within an organisation and each role has its importance and thus their activities allows in proper growth and development of the organisation. Since the bank aims to offer high-quality service to its customers in Britain and other branches, the operations functional allows in smooth fulfilment of objectives thus which allows offering satisfaction to customers. Factors such as CSR, sustainability and culture in the organisation also have a great impact on the decisions made by the management and efficiency of operational functions.
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